Common Law - Assignment Sample

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Contents
Solution 1...................................................................................................................... 2
Issue......................................................................................................................... 2
Law.......................................................................................................................... 2
Application................................................................................................................. 3
Conclusion.................................................................................................................. 4
Solution 2...................................................................................................................... 4
Issue......................................................................................................................... 4
Law.......................................................................................................................... 4
Application................................................................................................................. 5
Conclusion.................................................................................................................. 7
Reference List................................................................................................................. 8

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Solution 1
Issue
Is the law of misrepresentation applicable and Angela can terminate the contract with Jessica?
Law
The common law is the precedent law or a case based law and is applicable in almost most of the
countries of the world. One of the most prominent common law is the law of misrepresentation.
When any plaintiff has the right to cancel the contract which she has made with the defendant on
account of false representation incurred by the plaintiff, then, it is an act of misrepresentation. In
Edgington v Fitzmaurice (1885) the concept of misrepresentation is explained and it was
submitted that statement which are falsely made in order to misguide the plaintiff and to
establish a contractual relationship with him is not allowed in law. Thus, to prove
misrepresentation on the part of the defendant there are few elements that must be comply with.
The elements are: (Barrett 2013)
i. That it is necessary that the defendant should have made any statement to the
plaintiff. The statement so made must be such which is of fact. Any statement which
is of law, opinion, expression stands n relevance under the law of misrepresentation.
The factual statement should be some present or future fact and not of some past fact
Bisset v Wilkinson (1927);
ii. It is necessary that the statement has no truth in it and is totally false when made by
the defendant Museprime Properties v Adhill Properties. No. 36. EG (1990);
iii. It is also further submitted that when the defendant is making the false statements
then he must be aware that the basis of the statement is not true. The false statement is
made intentionally by the defendant to the plaintiff;
iv. The main reason for making false statements is that the plaintiff will then agree in
making a contract with him. Defendant is fully aware that of the plaintiff will know
the truth then there will be no contract formation amid the parties;
v. It is also necessary that the false representation that is made by the defendant has
actually influenced the decision of the plaintiff and the main reason for entering into
the contract is the statement so made by the defendant and is rightly analyzed in
Derry v Peek (1889).

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All these elements tighter makes a contract based on misrepresentation and thus invalid in law.
The law is now applied to the facts of the case.
Application
It is submitted that Angela has full right to cancel the contract because there is misrepresentation
that is incurred by Jessica on Angela. The following situations are incurred that resulted in
misrepresentation:
i. Jessica has made a factual statement to Angela. She submitted that the annual profits
for the restaurant are $10,000. This is a fact and is not an opinion or expression.
Jessica has provided the receipt of the accounts to authenticate the statement that is
made by her. Thus, a factual statement is made as held in Bisset v Wilkinson;
ii. But the statement so made is not true. Though Jessica has submitted that the annual
turnover of the restaurant is $10,000 but the same was only for 2007. From 2008 the
restaurant is only earning $200o annually. Thus, the statements ah no relevance of
truth as held in Museprime Properties v Adhill Properties. No. 36. EG.
iii. When the statement is made then Jessica is fully aware that she is making a false
statement. The main intention of making the false statements is that to bring an
influence upon Angela so that she rely on the statement is made and enters into a
contract with her. Jessica is fully aware that of Angela will knew the truth of the
annual accounts then she will not make a contract with her, thus, she made a false
statements of fact intentionally;
vi. Angela after understating that the restaurant is earning $10,000 annually as stated by
Jessica, relied on the said statement of fact and thus enters into a contract with
Jessica. Thus, the basis of the contract is the statements that are made by Jessica and
not any other reasons as held in Derry v Peek (1889).
From all the facts above and after application of law on the said facts, it is clear that the Jessica is
liable under the law of misrepresentation as a false representation is made intentionally to
deceive Angela and to make a contractual relationship her.