UK · Year 1 · Contract Law
Misrepresentation, Mistake & Duress
Vitiating factors.
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Show all 8 questions and answers in this book
1.Derry v Peek (1889) — definition of fraud?
A false representation made knowingly, without belief in its truth, or recklessly, careless whether it be true or false.
(1889) 14 App Cas 337 (HL)
2.Bisset v Wilkinson [1927] — principle?
A genuinely held statement of opinion (sheep capacity of land never farmed for sheep) is not a statement of fact for misrepresentation.
[1927] AC 177 (PC)
3.With v O'Flanagan [1936] — principle?
A representation true when made but falsified by a change of circumstances before the contract must be corrected.
[1936] Ch 575 (CA)
4.Misrepresentation Act 1967, s 2(1) and Royscot Trust v Rogerson [1991]?
s 2(1) gives damages for negligent misrepresentation unless the representor proves reasonable grounds for belief; Royscot held damages are assessed as if fraud (all direct loss).
MA 1967, s 2(1); [1991] 2 QB 297 (CA)
5.Great Peace Shipping v Tsavliris Salvage [2002] — held?
Common mistake voids a contract only where it makes performance essentially different from that contemplated; there is no separate equitable jurisdiction to rescind for mistake (Solle v Butcher not followed).
[2002] EWCA Civ 1407
6.Shogun Finance v Hudson [2003] — held?
Where a written contract identifies a party, a mistake as to identity (a fraudster using another's name) made the contract void.
[2003] UKHL 62
7.Royal Bank of Scotland v Etridge (No 2) [2001] — held?
A bank is put on inquiry whenever a wife stands surety for her husband's debts and must take reasonable steps, such as ensuring she receives independent legal advice.
[2001] UKHL 44
8.Times Travel v Pakistan International Airlines [2021] — held?
Lawful act economic duress exists in English law but requires reprehensible conduct (e.g. a demand made in bad faith); hard commercial bargaining is not enough.
[2021] UKSC 40