1. Misrepresentation

2. Vitiating factors Impair the validity of a contract Render a contract
void or
voidable
Vitiating factors = elements which impair the validity of a contract
Render a contract
void (it has no legal effect, a nullity)
Voidable (one of the parties may avoid the contract / have the contract set aside) – until that point it remains valid
Contract law is based on the “freedom of contract” – the idea that people are free to voluntarily enter into contracts.
However, if someone enters into a contract because they are forced to, or on the basis of false information, then the freedom of contract has been undermined.

3. Misrepresentation A false assertion of material fact
made through words or acts,
which acts to induce the other party to sign the contract.
In general there is no duty of disclosure
Today look at one of those vitiating factors > misrepresentation > if representation is proved, it renders a contract voidable
Induce = persuade
Must induce them to sign the contract - if a defect was concealed but the buyer did not inspect the object this cannot be grounds for misrepresentation,
In general there is no duty of disclosure :Silence – failure to disclose important information – will not usually constitute misrepresentation, but it can in some limited circumstances (e.g. in insurance contracts or relations between trustess and beneficiaries of a trust),

4. Opinion or fact?
If D is an expert or professional, the court is more likely to consider that a statement was an assertion of fact

5. Sales talk” or “advertising puff” does not constitute misrepresentation
Sales talk / puff
Promotional speech >no reasonable person would take literally

6. Misrepresentation
Misrepresentation under Section 2(1) of the Misrepresentation Act (1967)
The defendant must show that
he believed the statement to be true at the time it was made, and
there were reasonable grounds for that belief
There are different types of misrepresentation.
The easiest to for a claimant to claim under is the MRA
This puts the onus on the defendnat > its the def who has to prove something

7. Misrepresentation Fraudulent misrepresentation
making a false statement, while
knowing it to be true, or
reckless about whether it was true
Fraudulent: makes a false statement, knowing it to be true, or reckless about whether it was true
Mis Act: The onus is on the defendant to show that he believed the statement to be true at the time it was made, and there were reasonable grounds for that belief
Don’t firget that in tort, there is also Negligent misstatement > seen on correction
Negligence, duty of care made by those with expert knowledge or skill, making statement to those with whom they have a “special relationship” such as a customer or client – must use reasonable care to ensure the accuracy of their representations

8. Misrepresentation Remedies Damages
Rescission (to rescind): an equitable remedy allowing courts to set aside a voidable contract