IBL Lecture 8 - Autumn 2009


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Unformatted text preview: entee into entering into a contract. In the event of misrepresentation, the innocent party has a right to rescind the contract. The innocent party must prove: A false statement was made (directly/indirectly). That the statement was one of fact. Edgington v Fitzmaurice (1885) 29 CHD 459 & Smith v Land & House Property Corporation (1884) 28 ChD 7 It was addresses to the party misled (before/at the time the contract was made. AND It was intended to induce and did induce the contract. Horsfall v Thomas (1862) 158 ER 813 & Redgrave v Hurd (1881) 20 ChD 1 Misrepresentation Misrepresentation There are a number of different types of mistake including: Fraudulent misrepresentation Negligent misrepresentation Innocent misrepresentation Classification depends on the knowledge and intention of the representor at the time the untrue statement was made. Fraudulent Misrepresentation Fraudulent Involves a deliberate untruth. A subjective test is applied, that is, whether the representor had an honest belief in the truth of the statement at the time of making it. Contracts induced by fraudulent misrepresentation can lead to recision and damages. The innocent party must prove: The representation was false; AND It was made wrongfully...
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