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The Common Law of Misrepresentation - Doc

   

Added on  2021-06-14

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1ContentsSolution 1.........................................................................................................................................2Issue.............................................................................................................................................2Law...............................................................................................................................................2Application...................................................................................................................................3Conclusion...................................................................................................................................4Solution 2.........................................................................................................................................4Issue.............................................................................................................................................4Law...............................................................................................................................................4Application...................................................................................................................................5Conclusion...................................................................................................................................6Bibliography....................................................................................................................................7
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2Solution 1IssueIs the contract amid Angela and Jessica is based upon misrepresentation?LawThe common law of misrepresentation is applicable in order to resolve the issue.Misrepresentation is said to incur by one party over another when one party to the contractmakes statements which are of factual nature and which are intentionally made so that the otherparty who is relying on the statements makes a contractual relationship with him.[ CITATIONThe181 \l 1033 ]A contract based with misrepresentation has no significance and can be terminated by theaggrieved party to the contract, who has made contract by relying on the misrepresentedstatements. The aggrieved party also has the right to sue the wrongdoer and can claim damagesfor the loss suffered by relying on the misrepresentation and are held in the leading case of[ CITATION Edg85 \l 1033 ]. The main elements that are required to prove misrepresentation comprises of:i.Statement of fact – It is necessary that a misrepresentation can only be maderegarding some factual scenario. No misrepresentation can be made if any opinion ismade by the defendant. If the defendant’s statements are mere his expressions thenthe same are not misrepresentation in law and is held in [ CITATION Bis271 \l 1033 ]. ii.The statement must be made by the defendant. Silence is not considered to bemisrepresentation in law. iii.The statement of fact that is made by the defendant must not be true in nature. Thedefendant must be aware that he is making an untrue statements;iv.The main intention of the defendant of making the untrue statements is to induce theplaintiff so that a contract can be established by him and is rightly held in [ CITATIONMus90 \l 1033 ].v.It is necessary that the plaintiff has made a contract with the defendant only on thebasis of the statement of fact that is made by the defendant. If the basis of contractformation is not the statements which are made by the defendant but the contract is
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3based on some other grounds, then, the contract is not suffered frommisrepresentation and is held in the leading case of [ CITATION Der89 \l 1033 ]. The law is now applied. ApplicationThere are two parties involved, that is, Angela (buyer) and Jessica (seller). Angela is wishing tobuy the restaurant of Jessica. However, it is submitted that there is misrepresentation that iscaused by Jessica upon Angela. The same is submitted as follows:i.During the discussing when Angela enquired regarding the annual profits, a statementof fact was made by Jessica that the annual profits of the restaurant is $10,000. Thestatement is neither an opinion nor mere any expression. Rather, the statement that ismade is of fact as the receipt of 2007 accounts states that the annual profits for thesaid year was $10,000;ii.The statement that was made by Jessica was a positive statements and not construedin silence;iii.The statement that is made by Jessica was not true and the same was in theknowledge of Jessica. Jessica is aware that the annual profits of $10,000 are only forthe year 2007. After 2007, that is, from 2008, the annual profits that are derived fromthe restaurant is only $2000 and not $10,000. Thus the statement that was made wasnot true in nature. iv.The statement that was made by Jessica was made so as to induce Angela so that heenters into a contract with her for the purchase of the restaurant. Jessica is aware thatAngela is relying on the statements made by Jessica before finalizing the decision ofthe buying the restaurant or not. the decision is solely made on the statements that aremade by Jessica and not on any other grounds;v.Angela after relying on the statements so made by Jessica purchased the restaurant.Thus, it is submitted that the statement that are made by Jessica are misrepresentations in law.there was no truth in the statements and the statements were merely made in order to indulgeAngela so that she enters into a contract with Jessica. The statements ere not opining but are thestatements of facts which are not true.
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