Australian Consumer Law - Assignment
Added on 2021-05-30
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Running Head: AUSTRALIAN CONSUMER LAWAUSTRALIAN CONSUMER LAWName of the Student:Name of the University:Author Note
1AUSTRALIAN CONSUMER LAWPart B:Answer 2:Issue:In the given scenario the issue that is said to exist is whether the terms of the contract that hadbeen signed between Barry and Angelo were misrepresented and whether the contract was avalid one.Law:Misrepresentation in the terms of a contract can be defined as a false statement or expressiongiven by either of the parties to the contract on which the other party relies. Misrepresentationnegates the validity of the terms of the contract. In case party relies on the misrepresentation andsu9bsequetly suffers a loss, the aggrieved party is entitled to rescind the contract and claimdamages. The case Money v Westpac Banking Corporation (1988) ATPR (Digest) 46-0381misleading and deceptive conduct. It had been held in this case that a party has the right toenter into another contract if he has been a victim of misrepresentation. In the case Demagogue Pty Ltd v Ramensky (1992) 39 FCR 312it had been held that for anyperson to take action against misrepresentation, it must be proved by such person that thestatement on which he relied and the statement which constituted misrepresentation was false innature and different from normal state. However it can be stated that a person is not allowed totake action against any misrepresentation made by a party which is in relation to a future event oran upcoming event, as held in the case Edgington v Fitzmaurice3. However, there is one1Money v Westpac Banking Corporation (1988) ATPR (Digest) 46-0382Demagogue Pty Ltd v Ramensky (1992) 39 FCR 313(1885) 29 Ch D 459
2AUSTRALIAN CONSUMER LAWexception to this rule which gives the right to the aggrieved party to take actions against themisrepresenting party in relation to future upcoming events only when the misrepresented termsare formed in the contract.The notable case Smith v Land & House Property Corp 4deals with misrepresentation which isconstituted by false statement of fact. In this case it had been held that any person giving a falsestatement in the form of an opinion, who was in a position to know that the true facts of the case,his opinion would constitute a false statement of facts. In the case Solle v Butcher 5it had beenheld by the court that where any misrepresentation has been constituted by a statement of law,the aggrieved party will not have the right to take actions against such misrepresentation. As held in the case Lambert v Co-Operative Insurance6misrepresentation can be constituted by astatement which has the capacity to encourage the other party to enter into the contract due tosuch false statement. In this case it had been provided that if any of the parties to the contractwho had strong knowledge about the truth of the facts, fails to disclose a material fact the otherparty who relied on such information would be entitled to avoid the contract. Misrepresentation can be categorized in to three categories which are FraudulentMisrepresentation, Negligent misrepresentation and wholly innocent misrepresentation.Fraudulent Misrepresentation is of particular importance in this given scenario. Fraudulentmisrepresentation had been illustrated in the case Derry v Peek as a statement of fact which isfalse in nature and which was given knowingly by the misrepresenting party or without belief tobe true or recklessly. In such a case the plaintiff who asserts the fraud will have the burden ofproof. In case an actionable misrepresentation has been established the aggrieved party has the4(1884) 28 Ch D 75 [1950] 1 KB 6716Lambert v Co-Operative Insurance [1975] 2 Lloyd's Rep 485
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