Law Assignment | Applied Contract Law

Added on - 28 May 2020

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Applied contract lawAssignment 2(Student Details: )I have read and understood the Curtin Plagiarism policy.This assessment task submission has not previously been submitted by me orany other student or person at Curtin or any other university.
Applied contract lawContentsQuestion 1(a)...............................................................................................................................................3Issue........................................................................................................................................................3Rule.........................................................................................................................................................3Application..............................................................................................................................................5Conclusion...............................................................................................................................................6Question 1(b)...............................................................................................................................................7Issue........................................................................................................................................................7Rule.........................................................................................................................................................7Application..............................................................................................................................................8Conclusion...............................................................................................................................................9Question 2.................................................................................................................................................10References.................................................................................................................................................12Page2
Applied contract lawQuestion 1(a)IssueWhether a successful claim of misrepresentation be brought against lovematchforyou.com by Carl, ornot?RuleMisrepresentation is deemed as the false statement of law or fact through which an individual isinduced by the representee to get in the contract (Stone, 2005). In such cases where a statement ismade when the negotiations are going on, it is deemed as representation instead of being deemed as anaction for making a claim of misrepresentation, which can be undertaken when the statement is provedto be untrue (Harris and Croese, 2014). When a case of misrepresentation is found, the contractbecomes voidable at the option the aggrieved party. The remedy which is available in cases ofmisrepresentation includes rescission or damages (Cartwright, 2012).A key requirement regarding the misrepresentation claim to be upheld is false statement to be maderegard a fact, instead the same being a prediction regarding the future or an opinion (Clarke and Clarke,2016). In the case ofBisset v Wilkinson[1927] AC 177, the plaintiff bought farm land and while this wasbeing done, he had enquired the seller for how many sheep would be held in the land. Even though thisland had not been used, he had given an estimate of two thousand sheep. Relying on this statement, theplaintiff purchased the land; and found out that the estimate was wrong. When a claim ofmisrepresentation was brought, the Privy Council declined the claim on the basis of the statement beenone of opinion and not of fact (McKendrick, 2014).Page3
Applied contract lawHowever, an exception to this case is such an opinion given, where the representing party held theposition of knowing about the facts. InSmith v Land & House Property Corp(1884) 28 Ch D 7, a hotel hadbeen bought by the plaintiff. When selling this hotel, the seller described the tenant in the building asthe most desirable one. The fact here was that the seller clearly knew about the rent of the tenant beingin arrear and that he was also on the verge of going bankrupt. This was deemed as a statement of factinstead of one of opinion, owing to the position of the seller to know about these facts (NetworkedKnowledge, 2018).Another important point in this regard is reliance to be placed on the false statement which has beenmade by the representor. So, where a false statement has been made to induce the other party, theother party must be induced by such false statement, to make a case of misrepresentation (Latimer,2012). Where the representee was not aware of false statement made, a case of misrepresentationwould not hold, as was seen in the case ofHorsfall v Thomas[1862] 1 H&C 90. In this case, a gun withconcealed defect was bought by the plaintiff. As he had not inspected the gun before making thepurchase, his claim of misrepresentation failed (Poole, 2016).There are different types of misrepresentation and on the basis of the type of misrepresentation, theremedy is made available. The three types include fraudulent misrepresentation, negligentmisrepresentation, and wholly innocent misrepresentation. In cases of fraudulent misrepresentation,the available remedies are rescission of contract and claim of damages (Stone and Devenney, 2017).InDerry v Peek(1889) 5 T.L.R. 625, fraudulent misrepresentation was defined by Lord Herschell as astatement which is made either knowingly to be false; without believing in the same to be true; orcarelessly or recklessly making a statement which could be either true or false. In this case, in theprospectus of the company, the defendant had stated that the company had the right of using steampowered trams in comparison to the horse powered trans. Though, these trams at that time requiredPage4
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