Is Jessica accountable for misrepresentation while making contract with Angela? Law
Added on 2021-06-15
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1ContentsSolution 1....................................................................................................................................................2Issue........................................................................................................................................................2Law..........................................................................................................................................................2Application..............................................................................................................................................2Conclusion...............................................................................................................................................3Solution 2....................................................................................................................................................3Issue........................................................................................................................................................3Law..........................................................................................................................................................3Application of law...................................................................................................................................5Conclusion...............................................................................................................................................6Reference List.............................................................................................................................................7
2Solution 1IssueIs Jessica accountable for misrepresentation while making contract with Angela?LawThe law of misrepresentation is a very important law which is based on deception andmisleading acts of the defendant. There are few fundamentals that need to be proved. The sameare: (Latimer 2011)i.The defendant is necessary to make a statement of fact. Any statement which is oflaw, expression, opinion etc are not statement of law and has no relevance in the lawof misrepresentation and is held in Esso Petroleum v Mardon [1976].ii.That the statement of fact that is made by the defendant is false in nature and thedefendant is aware of the same. The defendant has made the statement intentionallyand is held in Solle v Butcher [1950];iii.That the statement that is made is intentionally made so that the plaintiff can beinduced and can be compelled to make a contract with the defendant. The inducementis made that results in making a contract with the plaintiff and the defendant and isheld in Horsfall v Thomas [1862];iv.That the contract is made by the plaintiff after relying on the statement of fact that ismade by the defendant. If the basis of contract is not the statement of fact, then, thereis no contract amid the parties and is held in Hedley Byrne v Heller [1964].All the elements results in misrepresentation.Application Jessica is willing to sell her restaurant to Angela. She made a representation that the annualprofits of the restaurant is $10,000. This is a statement of fact.Now, this statement of fact was not true in nature. The annual profits of the restaurant were$10,000 but only for 2007. Jessica is aware that the annual profit for the restaurant from 2008 tillthe next five years is $ 2000. Knowing the same, Jessica still preferred to intentionally hide thetrue annual profits of the restaurant.
3The false statement is made so that Angela relies on the same and thus agrees to buy therestaurant. Thus, there an act of deception that is made by Jessica. Angela actually relied on thestatement and thus bought the restaurant. She later analyzed that the actual profits of therestaurant is $2000 and not $10,000.Thus, all the elements of misrepresentation are comply with.ConclusionAngela can cancel the contract as there was misrepresentation that is incurred by Jessica on Angela. Solution 2IssueWhether Acme Cola Company is liable to Smiths for negligence?LawThe case law provided in the assignment is based on law of negligence.The Law of tort is very vast and one of its branches is the law of negligence. As per the law ofnegligence, a defendant is liable to the injured when the defendant does not take due care whileperforming his acts and thus performs his acts in such a manner so that the same is the cause ofinjury to the injured/Plaintiff. The law of negligence was developed further with the case ofDonoghue v Stevenson (1932) which is one of the most important cases in the history of law ofnegligence. As per the said case, the performer of the act is liable to all the persons who are hisneighbor. A neighbor as per the law of negligence is the person who is reasonably foreseeableand likely to be affected by the act of the Defendant. Likewise the law of negligence imposesliability on the manufacturer of the articles in case of any loss or injury is sustained by the personconsuming it as such person or consumer is considered to be a neighbor with respect to law ofnegligence. (Plunkett 2018)
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