A more recent version of these Misrepresentation 2 Categories And Remedies notes – written by Cambridge/Bpp/College Of Law students – is available here.
The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Contract Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
CONTRACT LAW MISREPRESENTATION 2: CATEGORIES AND REMEDIES
FRAUDULENT MISREPRESENTATION??It is very difficult to prove fraudulent misrepresentation. Burden of proof = claimant. Standard of proof = slightly higher than regular burden in civil cases. Once fraud has been proven, there are no defences, motive is irrelevant. Remedies for fraudulent misrepresentation: rescission AND damages AND indemnity (if relevant). CASE
RULEDefinition DERRY V PEEK
A false representation is made:?Knowing it was untrue; or Without belief in its truth; or Reckless as to its truth.
One of these must be proven in order for there to be fraud.
THOMAS WITTER V TPB INDUSTRIES
Definition of reckless: a disregard for the truth...where the defendant has shut his eyes to the facts, or purposely abstained from enquiring into them.Courts will ignore any investigation undertaken by ClaimantFailure to disclose a change of circumstances will at least be negligence, but may also be fraudulent if it was
S PEARSON V DUBLIN CORP
BANKS V COX Deliberate failure to inform prospective purchasers of change in the social services budget, which would impact the nursing home business. HELD: Deliberate nature of the failure
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