The House of Lords held that because the bank should have been aware of the risk of misrepresentation by the husband, but had taken no steps to encourage the wife to take independent legal advice, it could not enforce the contract of guarantee against her.21 In effect, therefore, a misrepresentation made by a person who was not the other contracting party was being used to rescind the contract. If, for example, a purchaser has spent money on extensive market research and is aware that there is a demand for a particular product in a particular market, it would not make economic sense (in a system based on capitalism and free trade) to require the disclosure of that information. The Article goes further, however, and in paras 3 and 4 makes a party who, in negotiating, is not genuinely trying to reach an agreement liable for any losses which such behaviour may cause to the other party. Damages at common law. Museprime Properties Ltd v Adhill Properties Ltd [1991] Attwood v Small [1838] Redgrave v Hurd [1881] McInerny v Lloyds Bank Ltd [1974] 17. In general, there is no misrepresentation by silence. Held: The Court of Appeal held that the failure to notify the purchaser of the fact that the earlier statement was no longer true amounted to a misrepresentation.39 The purchaser was entitled to rescind the contract. This is in line with the general approach outlined at the beginning of this chapter, that English law imposes a negative obligation not to tell falsehoods, rather than a positive obligation to tell the truth. The second answer is based on ‘economic efficiency’. kma. At that time, they knew that one member of the group intended to leave, as she did shortly after the contract had been signed. An example is the requirement under the Consumer Credit Act 1974 that the interest charged for credit should be presented to the potential debtor in a standardised form (the ‘APR’) which assists in making comparisons between the terms offered by different lenders.14 There are also some situations where, independent of any possible liability for misrepresentation, criminal liability is attached to making misleading statements to potential contractors.15 These controls over pre-contractual statements are not discussed further here. This was the view of the Court of Appeal in, The answer may lie in differentiating between ‘reasonableness’ for the purposes of materiality, and the reasonableness of a person’s believing that the statement was true. In fact, the younger son knew that his parents had been through a secret marriage ceremony prior to the birth of his elder brother. Log In or. Information is valuable, and those in possession of it should not necessarily be required to disclose it. With v O' Flanagan. This was the view of the Court of Appeal in Barton v County NatWest Ltd.55 Moreover, the presumption will not disappear simply as a result of the fact that the claimant has given evidence; the burden remains on the defendant to disprove it. The other areas are covered in the subsequent chapters. Classic; Flipcard; Magazine; Mosaic; The must induced the representee to enter into a contract and the onus lies on representor to show that the representee did not in fact rely on the representation Museprime Properties Limited v Adhill Properties Ltd (1991) and County Nat West v Baron (2004). There was an inaccurate statement in the auction particulars, which was reaffirmed by the auctioneer, to the effect that rent reviews of three leases to which the properties were subject had not been finalised. The courts may consider silence to be morally questionable but still won't be a misrepresentation. You have at your disposal scanned copies of official documents submitted by the company at Companies House. You can write a book review and share your experiences. Smith v Land and House Property Corporation. Description . This was the view of the House of Lords in Pan Atlantic Insurance Co Ltd v Pine Top Insurance Co Ltd.58. Negligent misrepresentation. CASELAWYER (DENIS MARINGO): MUSEPRIME PROPERTIES LTD V ... ... ML A further civil remedy for certain types of statement inducing a contract (that is, those which can be put into the form of a promise) may be available where the promise can be found to form part of a collateral unilateral contract, of the form ‘If you enter into a contract with me, I promise you X’. Be noted that there are, however, some exceptions to this Article please select a referencing stye:. 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