WJEC A-Level Law 603-1978-1
Law Making in Wales and the UK
Delegated Legislation
Statutory Interpretation
Judicial Precedent
The Civil Courts and Dispute Resolution
The Criminal Process and the Criminal Courts
Legal Personnel and the Judiciary
Access to Justice and Funding
Tort: Rules and Theory
Tort: Negligence
Tort: Occupiers' Liability
Tort: Remedies
Human Rights: Rules and TheoryHuman rights
Human Rights: Key Convention ProvisionsHuman rights
Human Rights: RestrictionsHuman rights
Human Rights: EnforcementHuman rights
Human Rights: Protection and ReformHuman rights
Contract: Rules and TheoryContract
Contract: FormationContract
Contract: TermsContract
Contract: Misrepresentation and DuressContract
Contract: DischargeContract
Contract: RemediesContract
Criminal Law: Rules and TheoryCriminal
Criminal Law: General Elements of LiabilityCriminal
Criminal Law: Offences Against the PersonCriminal
Criminal Law: Property OffencesCriminal
Criminal Law: DefencesCriminal
Criminal Law: Preliminary OffencesCriminal
Contract: Misrepresentation and Duress
Negligent misrepresentation and the Misrepresentation Act 1967
- 3 things to know
- A2 Units 3 and 4
Overview
Recall questions on Hedley Byrne and its application in Esso v Mardon, the reversed burden of proof, Howard Marine, the criticism of Royscot, and damages in lieu of rescission.
What you need to know
Answer each one before you reveal it.
Summarise the remedies available for a negligent misrepresentation.
What does section 2(1) of the Misrepresentation Act 1967 provide?
Questions from this subtopic
Each one with the model answer underneath.
- 1
What is negligent misrepresentation at common law?
Model answer
It is a false statement made carelessly where the maker owes the representee a duty of care, giving rise to liability in negligence for the loss caused by relying on it.
- 2
What did Hedley Byrne v Heller (1964) establish?
Model answer
It established that a duty of care can arise in respect of a negligent statement causing purely financial loss where there is a special relationship involving an assumption of responsibility by the maker and reasonable reliance by the recipient.
- 3
How was the Hedley Byrne principle applied to pre-contractual statements in Esso Petroleum v Mardon (1976)?
Model answer
The court held that a party with special skill who makes a statement to induce a contract owes a duty of care in making it, so the oil company was liable for the careless throughput forecast.
- 4
What does section 2(1) of the Misrepresentation Act 1967 provide?
Model answer
Where a party has entered a contract after a misrepresentation made by the other party and has suffered loss, the maker is liable in damages unless he proves he had reasonable grounds to believe, and did believe up to the time of the contract, that the statement was true.
- 5
Why is the burden of proof under section 2(1) of the Misrepresentation Act 1967 an advantage to the claimant?
Model answer
The claimant need only prove the false statement and the loss, and the maker must then disprove negligence, which reverses the ordinary position and is far easier than proving carelessness or dishonesty.
- 6
Why did the defendants fail to discharge the statutory burden in Howard Marine and Dredging v Ogden (1978)?
Model answer
The manager stated the barges' carrying capacity from a figure remembered from a shipping register when the accurate figure was in the shipping documents in his own possession, so he had no reasonable grounds for the belief.
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