INTRODUCTION TO ENGLISH
CONTRACT LAW:
Nadine Tilbury
Bielefeld University 2006
RECAP
Introduction
Offer and Acceptance
Intention
Consideration
Capacity
Privity
Representations
Terms
Exclusion clauses
NEXT
Misrepresentations
Mistake
Duress / undue influence
Illegal and void contracts
Discharge
Remedies
VOID AND VOIDABLE CONTRACTS
– VITIATING FACTORS
VOID AND VOIDABLE CONTRACTS
– VITIATING FACTORS
Misrepresentation
Mistake
Duress
Undue influence
Illegality
Can invalidate otherwise valid contract
Void – never valid in the first place
Voidable – can be avoided or continued or can
replace terms with better ones.
MISREPRESENTATION
“A representation is a statement made by one
party to the other, before or at the time of
making the contract, with regard to some existing
fact or to some past event, which is material to
the contract”
A misrepresentation is an untrue statement of
fact, made by one party to another party to a
contract, either before or at the time of making
the contract, with the intention that the person to
whom the statement is made shall act upon such
misrepresentation, and he does so act.”
Cheshire and Fifoot: Law of Contract
MISREPRESENTATION cont
Statement of material fact, which is false
not opinion Bisset v Wilkinson 1927
not future intention – although a statement of
future intention can contain a representation of
an existing fact - Edginton v Fitzmaurice 1885
not trade puffs
made by one party to another party - not by a
third party (except an agent) Peyman v
Lanjani1985
before formation, not afterwards Roscaria v
Thomas 1842
intended to induce a party into the contract (but
not to form part of it) and did induce a party to
enter into the contract
INDUCEMENT
The representation must
Be known to the other party
Not already be known as false by the
other party
Be believed or relied upon
Misrepresentation (cont)
Plaintiff must have suffered damage from
the misrepresentation.
can result from conduct –