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Contract: Misrepresentation and Economic Duress

Statements of opinion, intention and expertise

  • 3 things to know
  • Components 2 and 3

Overview

When an opinion becomes a statement of fact, from Bisset v Wilkinson to Smith v Land and House Property and Esso v Mardon, and why the law is stricter with a party who has the expertise the other lacks.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

Is a genuine statement of opinion a misrepresentation?

Numbers

Why was the opinion in Bisset v Wilkinson [1927] not actionable?

Key term

When does an opinion become a statement of fact?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Is a genuine statement of opinion a misrepresentation?

    Model answer

    A genuine statement of opinion is not a statement of fact. Bisset v Wilkinson [1927] held that an estimate of the sheep a farm would carry was only an opinion.

  2. 2

    Why was the opinion in Bisset v Wilkinson [1927] not actionable?

    Model answer

    Neither party in Bisset v Wilkinson [1927] had experience of sheep farming on that land. The buyer knew the seller was doing no more than expressing a view.

  3. 3

    When does an opinion become a statement of fact?

    Model answer

    An opinion given by someone with special knowledge implies that facts support it. The maker impliedly asserts reasonable grounds for holding the view.

  4. 4

    Which case shows an opinion treated as a statement of fact?

    Model answer

    Smith v Land and House Property Corp (1884) concerned a description of a tenant as most desirable. The landlord knew the rent was paid late, so the opinion carried an implied false statement.

  5. 5

    What did Esso Petroleum v Mardon [1976] decide about a forecast?

    Model answer

    Esso Petroleum v Mardon [1976] concerned a forecast of petrol throughput at a new filling station. The company's expertise made the forecast an actionable statement rather than a bare opinion.

  6. 6

    Is a statement of intention a misrepresentation?

    Model answer

    A statement of present intention is a statement of fact about the maker's state of mind. A false statement of intention is therefore actionable.

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