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Vitiating Factors

Misrepresentation

  • 2 things to know
  • Component 4

Overview

Recall questions on what counts as a misrepresentation, fraudulent misrepresentation under Derry v Peek, negligent misstatement under Hedley Byrne v Heller, sections 2(1) and 2(2) of the Misrepresentation Act 1967, innocent misrepresentation, and rescission and its bars.

What you need to know

Answer each one before you reveal it.

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Key term

Under section 2(1) of the Misrepresentation Act 1967, when does statutory misrepresentation apply?

Key term

Which case established the test for fraudulent misrepresentation?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a misrepresentation in contract law?

    Model answer

    A false statement of fact made by one party to another that induces the other party to enter into the contract.

  2. 2

    What three types of statement must be distinguished from a statement of fact when determining whether a misrepresentation has occurred?

    Model answer

    A mere puff, a statement of opinion, and a statement of future intention; a false statement of law can now be actionable (Pankhania v Hackney LBC 2002).

  3. 3

    Does silence ordinarily amount to misrepresentation?

    Model answer

    No, silence generally does not constitute misrepresentation except in specific circumstances.

  4. 4

    In consumer contexts, what type of conduct beyond positive false statements can constitute misrepresentation?

    Model answer

    The omission of material information can constitute misrepresentation.

  5. 5

    What mental states satisfy the requirement for fraudulent misrepresentation?

    Model answer

    Making a false statement knowingly, without belief in its truth, or recklessly as to whether it is true or false.

  6. 6

    Which case established the test for fraudulent misrepresentation?

    Model answer

    Derry v Peek.

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