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

EXCEPTION

CASE

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