合同法英文版 mispresentation-std.ppt

chapter 7 DEFECTS IN THE CONTRACT A number of different defects which may affect the validity of the contract: Misrepresentation Mistake Duress and undue influence Effect of vitiating factors Void contract = no legal effect (it means ‘empty’) - there never was a contract at all Voidable contract = capable of being set aside – contract is binding unless and until innocent party chooses to set it aside The difference is whether a good title can be passed to a 3rd party Misrepresentation Representation is a statement of fact made by one party in the course of negotiation inducing the other party to enter into a contract. misrepresentation is …… Consequences: May make the contract voidable Actionable statement is 1. a statement of fact, which 2 is a material inducement to enter the contract ‘statement is not necessarily to be taken literally, a gesture, a nod or a wink can constitute statements of fact. statement of fact Gordon v Sellico (1986) Facts:The seller of property deliberately concealed dry rot i.e. his action deceived the buyer Held: This was misrepresentation Statement of fact (not opinion) Bisset v Wilkinson (1927) Seller sold land to the buyer, having told buyer that, if properly worked, he estimated the land could support 2,000 sheep but he’d never used the land to keep sheep himself. Held : He was voicing only an honest opinion.– statement of opinion, not fact – not misrepresentation Statement of fact (not opinion) However, Statement of opinion may be treated as statements of fact if maker with knowledge of the underlying circumstances, could not reasonably have held the opinion. Smith v Land and House Property Corp (1884) Statement of fact not intention Statements of intention may be treated as statements of fact if it can be shown that the intention never existed in the mind of the representor. Edgington v Fitzmaurice (1885) “Company prospectus wants to raise money to improve buildings”, however…… State