Template for Misrep.docx - Misrepresentation 1 The legal issue at hand is whether the statement \u201c_\u201d constitutes as a misrepresentation An operative

Template for Misrep.docx - Misrepresentation 1 The legal...

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Misrepresentation1.The legal issue at hand is whether the statement “____” constitutes as a misrepresentation.An operative misrepresentation consists in a false statement of existing or past fact made by one party before or at the time of making the contract, which is addressed to the other party and which induces the other party to enter into the contract. In order for misrepresentation to occur, a few elements are to be present.A.Elements of MisrepresentationI.There must be a false statement of fact by conduct or words that is false. The statement of fact must be falseif: Puff A puff is not a misrepresentation but a mere sales talk with no legal liability. [EXCEPTIONS] Statement is detailed and precise. OpinionOpinion is not misrepresentation, an opinion can never be a fact. [EXCEPTIONS] A statement of opinion is a representation if there is special knowledge or skill (negligent misrep). Representor made statement in circumstances that imply that he had access to info that reasonably supports his opinion. In reference to Esso Petroleum v Mardon, Court held that there was misrep as the person who gave the statement of opinion was from Esso and had experience and knowledge. IntentionIn general, a statement of intention is not a representation. It is an expression to future and does notinvolve any past or existing fact. [EXCEPTIONS]A statement of intention is a representation if representor did not have stated intention when makingthe statement. In reference to Edgington v Fitzmaurice,D company sold bonds to raise funds. It saidmoney would go to alter their buildings, buy horses, vans and expand into supplying fish. However,the real intention was to pay off the company’s debts. Plaintiff sued for misrepresentation andsucceeded.Law A statement of law cannot be a misrepresentation. [EXCEPTIONS] If representor did not hold that opinion or belief of law, or if the statement carries animplication of fact which is untrue. ConductIn general, representation can be made through a person’s conduct (expressed or implied). As long asit is intended to induce the other party to believe in a certain state of facts, the gesture or conductcan amount to a representation. In reference to the case, Cassa di Risparmio della Repubblica di SanMarino SpA v Barclays Bank Ltd (2011),statement that a financial product carried a “AAA” ratingcontained an implied representation that the product was low risk. 1
SilenceIn general, silence does not amount to a representation.[EXCEPTIONS]Silence may amount to a representation if silence can be misrep if it is a half truth. In reference toSpice Girls v Aprilia World Service,Aprilla entered into the contract after seeing the group appear in acommercial which had all 5 members. But prior to the commercial, Geri already informed Spice GirlsLtd that she was leaving the group. The contract was based on the representation that all 5 members

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