This document discusses misrepresentation in contract law. It defines misrepresentation as a false statement made to influence another party to enter a contract. There are three types of misrepresentation: fraudulent, negligent, and innocent. Fraudulent misrepresentation involves knowingly making a false statement. Negligent misrepresentation occurs when a false statement is made carelessly. Innocent misrepresentation involves making an untrue statement mistakenly. A misrepresentation can allow the misled party to rescind a contract or claim damages. Exceptions exist where statements were vague opinions, promises of future intention, or involved changed circumstances.

1. MISREPRESENTATIO
N
Contract
LawMisrepresentation in
contractTHE LAW GUIDE SOCIETY

2. MISREPRESENTATIO
N W E L C O M E
Presented By
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3. MISREPRESENTATIO
N IN THIS LESSON
NEGLIGENT
MISREPRESENTATION
What constitutes negligent
misrepresentation and
remedies
TYPES OF
MISREPRESENTATION
Fraudulent, innocent and negligent
representation
INNOCENT MISREPRESENTATION
What constitutes innocent
misrepresentation and remedies
WHAT CONSTITUTES
MISREPRESENTATION
What are the constituents of
an operative
misrepresentation
MISREPRESENTATION IN
CONTRACTWhat is misrepresentation
and what is its effect in a
contract
SILENCE AS MISREPRESENTATION
Does silence constitute
misrepresentation and when does
silences constitute
misrepresentation
REMEDIES FOR
MISREPRESENTATION
Rescission, restitution,
affirmation of contract etc
FRAUDULENT
MISREPRESENTATION
What constitutes fraudulent
misrepresentation and remedies

4. MISREPRESENTATIO
N What is an operative misrepresentation?
Representations are statements made in the lead
up to a contract intended to influence the other
party into entering the contract but which do not
become part of the contract
A misrepresentation is a representation which is
false or untrue
Generally, the legal effect of misrepresentation is
that it renders the contract voidable

5. MISREPRESENTATIO
N
Exception
Except where the statement is
specific or verifiable
Sales talk
Generally, sales talk expressed
in vague terms and used in
advertisement or promotional
items do no constitute
Except a statement of intention
or promise made without the
will or intention to put the
intention into effect
ExceptionStatements of
intentionA statement of intention or
promise to do something in
future does not constitute
misrepresentation
Except an opinion which the
person who expressed it does
not or could not be expected
hold it to be true
ExceptionComments &
OpinionsGenerally, opinions which
turns out to be unfounded
does not constitute
misrepresentation
Operative Misrepresentation
2a
3a3
2
1 1a
Except
Smith v Land & House
Property
Bisset v. Wilkinson
Except
Except
Edgington v Fitzmaurice
Carlill v Carbolic
Smokeball CoDimmock v Hallet

6. MISREPRESENTATIO
N
1
2
3
4
5
General Rule
Parties perform their
obligations under the contract
Exceptions
Parties enter a subsequent
agreement to relief
themselves of a previous
agreement
Contracts Uberimae Fide
A party breaches a term to the
contract that entitles the other
party to repudiate the contract
Changed Circumstance
An intervening event or
circumstances makes
performance impossible or
illegal
Effect of Partial
DisclosureParties are relieved of
their obligations under
the contract
Silence as misrepresentation

7. MISREPRESENTATIO
N Types of Misrepresentation?
Fraudulent
MisrepresentationIn Derry v. Peek fraudulent representation
2. False representation made knowingly without
belief in its truth and recklessly, carelessly
whether true or false
1. Proof of fraud
1. Derry v. Peek
2. Doyle v. Olby (Ironmongers) Ltd
References
Negligent
MisrepresentationHere you need to add some brief about the
service that your company is providing
currently
Reference
s Nocton v. Asburn
 Candler v. Crane, Christmas & Co
 Hedley Byrne v Heller & Partners
 Esso Petroleum v. Mardon
Innocent
MisrepresentationHere you need to add some brief about the
service that your company is providing
currently
References
 Newbigging v Adam
 Whittington v Seale-Hayne

8. MISREPRESENTATIO
N Remedies
Subject to…
Court’s Discretion Restitution Affirmation Lapse of time 3rd Party Rights
Rescission
Long v. Lloyd
Leaf v
International
Galleries
Phillips v. Brooks
Clarke v. Dickson
Head v. Tattersall

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