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Pankhania v London Borough of Hackney

[2002] EWHC 2441

Case summary last updated at 02/01/2020 15:07 by the Oxbridge Notes in-house law team.

Judgement for the case Pankhania v London Borough of Hackney

 Ps successfully bid for a property under the representations by the auctioneers that the people who used the car parks at the front of the properties did not have a legal right to stay there, whereas in fact this was a wrong interpretation of law and they were protected, reducing the value of the houses. The judge ruled that a misrepresentation of law could give rise to rescission. Rex Tedd QC (the judge) said that the old distinction between a misrepresentation of law which was not actionable and misrepresentation of fact had been abolished rightly by the HL, since where it was reasonable for P to rely on D’s statement of law, as here, there was little sense in denying P restitution for simple lack of legal knowledge. A misrepresentation of the law IS a misrepresentation of fact. 

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