Chapter 13 Misrepresentation - Chapter 13 Misrepresentation...

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Chapter 13 Misrepresentation Dimmock v Hallett [1866] Issue: Statement of past/present fact; Half truths smaller issue: puff Fact: An estate was being auctioned off. The estate contained land, which was described as “fertile and improvable”. However it was not mentioned by the time of auction that the tenants had given notice to quit the property. Mr. Dimmock sought rescission on grounds of misrepresentation. Verdict: Although the statement about the land being "fertile and improvable" was merely a "flourishing description" ( a puff ) and did not entitle the buyer to rescind, telling only a half truth about the tenants constituted good grounds for unwinding the contracts. Edgington v Fitzmaurice [1885] Issue: statement of future intention Representation does not have to be the only cause of inducement Facts: Directors of a company issued prospectors and requested loans from the claimant. They claimed the money was meant to grow their business. However, the money was in fact to pay off the company’s debts. The claimant sought repayment on grounds that it was obtained from him by misrepresentation. Verdict: The untrue statement as to future intention was a misrepresentation of fact. The directors misrepresented their intention behind loaning the money. NB: usually very difficult to prove intention, in modern times, internal emails of a company can be used as evidence to check for the actual intention of the representor. Bissett v Wilkinson [1927] Issue: statement of opinion – not a statement of fact; no special knowledge Facts: The claimant purchased 2 pieces of land, which the defendant said that he believed would be suitable for 2000 sheep. Both parties knew that the defendant had not carried on sheep farming on the land. The land would not, in fact , hold 2000 sheep. Verdict: The defendant made a statement of opinion that cannot give rise to actionable misrepresentation. The farmer did not make a statement with some special knowledge or skill which gives weight to his opinion. If that had been so, it would have been treated as a statement of fact. In the absence of fraud, the claimant had no basis on which to rescind the contract. Esso Petroleum Co. Ltd v Mardon [1976] Issue: statement of opinion; special knowledge and skill – statement of fact Negligent misrepresentation Facts: Mr Mardon was buying a petrol station, franchised by Esso Petroleum Co Ltd. Esso told him they had estimated that the throughput of a petrol station would be 200,000 gallons a year. However the local council made a decision on
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planning permission so there would be no direct access from the main street.
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  • Fall '15
  • Law, Esso, fraudulent misrepresentation, Misrepresentation in English law

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