Assignment Solution on Business Law (pdf)
Added on 2021-06-16
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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
1BUSINESS LAWSIssue Whether Angela is eligible to make a claim in relation to the contract she has entered into withJessica to purchase her business. The claim which has been identified in the situation can beaddressed in a proper way by referring to the laws relating to misrepresentation Rule The law relating to misrepresentation will give right to a party where it can be identified thatbefore the contract was formed with the other party there was a representation which had beenmade in form of a statement or expression and such statement or expression is not a contractualterm. Misrepresentation takes place when one party represents to the other party a “false statement offacts” as opposed to a statement of law or a statement of opinion. This statement which has beenrepresented by the party has to be false. The false nature of the statement does not depend uponthe knowledge of the person making it. If the representation is false in nature it would lead to amisrepresentation. In addition misrepresentation also does not depend upon the intention of theperson making the statement to commit misrepresentation and the elements of this contractvitiating factor can be identified irrespective of intention of the parties. However the intention ofthe parties will lead to the determination of the type of misrepresentation which has taken placewhich is essential to derive its remedies these rules had been stated in Bisset v Wilkinson [1927]AC 177. The court in Esso Petroleum v Mardon [1976] QB 801 stated that misrepresentation will takeplace when two factors are indentified in the pre contractual correspondences between theparties. The first factor is that one of the parties to the contract made a representation or
2BUSINESS LAWSstatement of fact which is false and not true. The second factor is that the other party relied on orgot induced via such representation to make the agreement with the other person. There are certain rules laid by the court which are deployed for the purpose of indentifying theelements of misrepresentation as done in Edgington v Fitzmaurice (1885) 29 Ch D 459. Astatement of fact is required to make misrepresentation as distinguished from a opinion orstatement of law. Thus in the case of Smith v Land & House Property Corp (1884) 28 Ch D 7 ithad been stated by the court that where the party making the opinion would had known that suchopinion is untrue then such opinion will be considered as a statement of fact rather than aopinion. As per the case of Alati v Kruger (1955) 94 CLR 216 this statement has to be untrueof false for a misrepresentation claim to arise. Whether the other party had relied in or had got induced by such statement of fact to get into thecontract is also an essential element as discussed via the principles of Horsfall v Thomas [1862]1 H&C 90. The courts have also provided different tests for the purpose of identifying whetherthe party had been actually induced or not. In Redgrave v Hurd (1881) 20 Ch D 1 the courtstated that where a party has been given a chance by the person making the statement of fact viawhich he or she had the opportunity to verify the statement, but there was a failure on the part ofthe party to do so they can still claim inducement in relation to misrepresentation. However thisrule will not be applied when the party has actually verified the truth behind the statement givenin Attwood v Small [1838] UKHL J60 The innocent party’s damages are reliant on the kind of misrepresentation which takes place.When a party makes a statement of fact having knowledge that it is false it would give rise to a
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