Misrepresentation Case Study

West 's Encyclopedia of American Law ( n.d) explained that representation is any action or conduct that can be turned into a statement of fact. Whiles, a misrepresentation is a false statement of fact made by one party to another. It has already been noted that the law makes a distinction between terms of the contracts and mere representations. Statements made prior to the formulation of a contract, while they may not be considered important enough to be classified as terms, will nevertheless have some bearing on whether or not the contract is concluded and, possibly, what form that contract takes. The courts developed the concept of misrepresentation, originally insofar as common law was prepared to give a remedy (for tort of deceit) only

There are four main categories of misrepresentation. They are: fraudulent misrepresentation, negligent misrepresentation at common law, representation under the Misrepresentation Act 1967 and finally, innocent misrepresentation.

In the case of Brian versus Brenda. Brian is the sole proprietor of Brian’s Café. In order to meet his financial targets, he decided to expand his menu for a sophisticated dinner, given the market unreliability for chickens due to bird flu, he concluded the best option would be in rearing Cornish hens. Brenda, an owner of two acres of land, conducted her business as Brenda’s Hatchery. Being the only available hatchery within close proximity, Brian approached Brenda. He offered to purchase one hundred Cornish hens on a monthly basis. Before the contract was concluded, Brenda said in summary, “I must state up front that you take them as they are. Please feel free to have them checked- though being in the business for fifteen years, I can attest that they are in the best health possible.” She further stated purchasing perks. Brian did not rely on Brenda’s opinion but rather, he sought advice from Jimmy, a friend, also a financial advisor who has been in the hatchery business for over ten years to give his opinion. Jimmy established that the hens were in good health and gave Brian the green light to make the purchase. Brian and Brenda signed a contract, which excluded

I stand firm that my client is innocent in the eyes of the law. Keep in mind, a false statement of opinion is not a misrepresentation of fact. Brenda voiced a statement of opinion when she said the hens were in good health. This is held to be a statement of opinion not a fact. Also, to amount to a misrepresentation, the false statement must induce the contract. If Brian had entered into the contract immediately after Brenda made her declaration, then she would have been held liable on the grounds of inducement into contract, by fraudulent misrepresentation. For a statement to operate as inducement it must fulfill several requirements, but the main one in this case would be the misrepresentation must be the material inducement. There will be no liability on the part of the misrepresentor, if the claimant relied on her or his own judgement or investigators (Jimmy). For an example, I’ll make reference the case of Atwood v Small, 1838, purchasers of a mine was told to exaggerate statements as to its earning capacity by the vendors. The purchasers had the statements checked by their own expert agents, who in error reported them as correct. It was held that the plaintiffs had been induced to enter the contract by their agents’ report and not by the vendors. Held in the absence of fraud: Brenda was under no implied duty to disclose the health of the hens. By Brian launching an investigation