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The Modern Law of Contract - PDF

   

Added on  2021-06-18

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Name of the Student: ThiThuy Trinh VoID Student: K151545
The Modern Law of Contract - PDF_1

Question 1IssueWhether there is representation that is incurred by Jessica and whether Angela has relied uponthe same prior formation of contract?LawThere are several laws that are prevalent under the common law which are framed inorder to protect the parties from the wrongful actionsof anotherparty. For instance, the law ofnegligence, trespass, misrepresentation etc.The law of misrepresentation is one of the common law which emphasis that no partymust make statements that are not true and are made with the intention to misguide the relyingparty and induce the relying party to establish a contract with the party who is making suchuntrue statements. The main requirements to prove misrepresentation includes: (Stone &Devenney 2017).Statement of factThe defendant must make statement of fact to the plaintiff. In Smith v Land & HouseProperty Corp (1884)it is only when the statement of fact is made that the law ofmisrepresentation can be established. Any statements that are of opinion, future intentions, law,etc have no significance under the law of misrepresentationBeach Petroleum NL v Johnson(1993).The statement of fact must not betrue When the statement of fact is made by the defendant to the plaintiff then it is necessarythat the statement so made must not be true in nature, the defendant is aware that he/she ismaking an untrue statement, if any true statements is made even without intention, then, it will
The Modern Law of Contract - PDF_2

not fall in misrepresentation. In Westpac Banking Corporation v Robinson(1993). It was heldthat misrepresentation will only incur when the statement so made is not true. The statement is made with the intention of inducing the relying party When the untrue statement is made by the defendant to the plaintiff, then, the mainintention of the defendant must be that the plaintiff must be induced so that he/she is willing toenter into a contract with the defendant.The law submits that inducing of the plaintiff is considered to be incurred when theplaintiff would not have made a contract with the defendant if is in the knowledge of the truth ofthe statement. Thus, inducing is the prime element in the law of negligence. (Cartwright 2012) The relying party is making contract on the basis of statement made It is necessary that the relying party, plaintiff, by influenced by the statements so madeby the defendant must make a contract with the defendant. It is necessary that the contract ismade only after relying on the statements, if the contract is made not by relying on the statementsso made by the defendant then it is not an act of misrepresentation.Thus, all the elements together results in a misrepresentation that is caused by thedefendant upon the plaintiff.Once a contract is said to be based on misrepresentation on the part of the defendant,then, the plaintiff has the power to terminate the contract and sue the defendant for the losssuffered by the plaintiff. The plaintiff is misguided by the defendant and thus is facing lossbecause of the representations that are made by the defendant. Thus, right is granted to theplaintiff to terminate the contract and seek damages for the losses that are suffered by him.
The Modern Law of Contract - PDF_3

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