Scribd
Upload
45 views2 pages

2020 Question 3 MISREPRESENTATION ANSWER SCHEME

The document discusses the Misrepresentation Act 1967, specifically section 2(1), which allows for damages in cases of fraudulent and negligent misrepresentation, shifting the burden of proof to the defendant. It references key case law to illustrate the application of this section and outlines the requirements for misrepresentation, focusing on the scenario involving Bas and Lord Toff's car sale. It also examines the potential for rescission of the contract, considering the implications of time and the changes made to the car.

Uploaded by

Abdul Hadie Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
45 views2 pages

2020 Question 3 MISREPRESENTATION ANSWER SCHEME

The document discusses the Misrepresentation Act 1967, specifically section 2(1), which allows for damages in cases of fraudulent and negligent misrepresentation, shifting the burden of proof to the defendant. It references key case law to illustrate the application of this section and outlines the requirements for misrepresentation, focusing on the scenario involving Bas and Lord Toff's car sale. It also examines the potential for rescission of the contract, considering the implications of time and the changes made to the car.

Uploaded by

Abdul Hadie Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

2020 Question 3 MISREPRESENTATION

(a) Explain, making reference to relevant cases, the operation of the


Misrepresentation Act 1967 section 2(1). (8 marks) (400 words max)

è Relates to damages (monetary compensation) under Misrepresentation Act


1967
è Tell / define section 2(1) MA 1967
è Purpose of section 2(1) – remedy of ‘damages for misrepresentation’ is
available in fraudulent and negligent misrepresentation, (not innocent).
è Burden of proof under section 2(1) shifts on the defendant to prove that he is
innocent.
è Case law (3 important cases)
è Howard Marine & Dredging Co Ltd v A Ogden & Sons (Excavations) Ltd
[1978]
è Foster v Action Aviation Ltd [2013]
è Al-Hasawi v Nottingham Forrest FC Ltd [2019],
è [Royscott v Rogerson] - it was stated that measures of damages should be
the reliance measures.
è The reliance measures can encompass the loss of profit/ bargain that the
claimant would have obtained from entering into some other transaction if
misrepresentation had not been made (International Trade Corporation
Limited (2013)]

PART B Problem Qs (16 marks) (700.800 words)

(b) Bas is the owner of Rude and Rare Cars Ltd. Lord Toff visits Bas and offers to
sell him his “rare Rolls Royce”. Lord Toff leaves the car with Bas so he can “look it
over”. Bas fails to check the car’s documents which would have revealed that it is in
fact a more common and less valuable Bentley. When Lord Toff returns, Bas buys
the car for £50,000. Bas has the car in his showroom for a month but it does not sell.
Bas decides to paint the car pink to see if that helps it sell. Five months later it is still
unsold.

Bas has been told by a law student that he might be able to “rescind his contract with
Lord Toff for misrepresentation”. Explain what this means and how, if at all, Bas can
do this.

Would your answer be different if Bas had sought to rescind the contract one month
after buying the car?

è “look it over” (buyer be aware) (silence does not amount as


misrepresentation)
è “rare Rolls Royce (factual statement)
è PART B – focusing on remedy of rescission
è But before moving onto remedy, you have briefly discuss the requirements &
type of misrepresentation.
è Define ‘misrepresentation’.
è Prove the 5 requirements
è Was there a false statement of fact? Yes
è “rare Rolls Royce (factual statement)
è it is in fact a more common and less valuable Bentley
è Inducement?
è Bas fails to check the car’s documents
è When Bas does not bother to check the documents, it means he was relying
on the factual statement made by Lord Toff.

è Type of misrepresentation
è Fraudulent or negligent or innocent?
è car’s documents – Fraudulent misrepresentation because Lord Toff already
knew about the fact and he lied.

Remedy (focus)

è What does rescission mean?


è How does rescission take place?
è What will happen in case the defendant absconds?
è BARs of rescission – LAPSE OF REASONABLE TIME (5 months)
è Another bar? Restitution impossible (CAR was PAINTED PINK)

You might also like