Misrepresentation
Section 18 defines misrepresentation as follows:
Misrepresentation means and includes making a statement in a manner that is unwarranted by the information of the person making it, of that which is not true, though he believes it to be true.
any breach of duty which, without an intention to deceive, gains an advantage to the person committing it or any one claiming under him, by misleading another to his prejudice or to the prejudice of anyone claiming under him. causing, however innocently, another party to commit a mistake as to the substance of the thing which is the subject of the agreement. Thus, when there is no intention to deceive but still a wrong statement has been made, or a duty has not been performed, or a mistake has been induced, it is misrepresentation.
Unwarranted Statements
Oceanic Steam Navigation vs Soonderdas Dharmasey 1980 - the defendants charted a ship from a company. The plaintiff had made a claim that the ship was not more than 2800 tonnage even though the plaintiff had not known about it. In reality the ship turned out to be more than 3000 tonnes. It was held to be misrepresentation and the defendants were allowed to avoid the contract.
Breach of Duty
Thake vs Maurice 1986 - Husband was not informed of the risks and failure rate of vasectomy before the operation. Later on wife became pregnant and the hospital was held guilty of misrepresentation and was ordered to pay compensation for all the pains and expenses of delivery.
Inducing mistake about subject matter
The subject matter of the contract is supposed by the parties to be of a certain value or quality. If one party, however innocently, leads another party to make a mistake as to the value of subject matter, it is misrepresentation.
Farrand vs Lazarus 2002 - A car dealer put a notice on a car that the mileage is incorrect even though he knew that the reading was grossly incorrect. This was held to be misrepresentation.
Suppression of Material and Vital Facts
R vs Kylsant 1932- Company prospectus said that company was regularly paying dividends, which implied that is was making profit. However, it did not say that company was making losses and dividends were being paid from war time accumulated profits.
Expression of Opinion
Merely expressing an opinion is not misrepresentation.
Bisset vs Wilkinsen 1927 - The seller was aware that the land was being purchased for sheep farming and he expressed an opinion that the land could carry 200 sheep. It turned out that the land was no suitable for sheep farming. The seller was not held liable.
Section 19 says that any contract which is induced by Coercion, Fraud, or Misrepresentation is voidable at the option of the party whose consent was caused due to coercion, fraud, or misrepresentation.
However, if the consent is obtained by misrepresentation of a fact or silence amounting to fraud, the contract is not voidable if the party whose consent was so caused was able to discover it with due diligence. Also, a fraud or misrepresentation that did not cause a party to give consent, does not render a contract voidable.
Section 19 A says that when an agreement is created due to a consent induced by undue influence, such an agreement is a contract voidable at the option of the contract whose consent is so caused.
Section 18 defines misrepresentation as follows:
Misrepresentation means and includes making a statement in a manner that is unwarranted by the information of the person making it, of that which is not true, though he believes it to be true.
any breach of duty which, without an intention to deceive, gains an advantage to the person committing it or any one claiming under him, by misleading another to his prejudice or to the prejudice of anyone claiming under him. causing, however innocently, another party to commit a mistake as to the substance of the thing which is the subject of the agreement. Thus, when there is no intention to deceive but still a wrong statement has been made, or a duty has not been performed, or a mistake has been induced, it is misrepresentation.
Unwarranted Statements
Oceanic Steam Navigation vs Soonderdas Dharmasey 1980 - the defendants charted a ship from a company. The plaintiff had made a claim that the ship was not more than 2800 tonnage even though the plaintiff had not known about it. In reality the ship turned out to be more than 3000 tonnes. It was held to be misrepresentation and the defendants were allowed to avoid the contract.
Breach of Duty
Thake vs Maurice 1986 - Husband was not informed of the risks and failure rate of vasectomy before the operation. Later on wife became pregnant and the hospital was held guilty of misrepresentation and was ordered to pay compensation for all the pains and expenses of delivery.
Inducing mistake about subject matter
The subject matter of the contract is supposed by the parties to be of a certain value or quality. If one party, however innocently, leads another party to make a mistake as to the value of subject matter, it is misrepresentation.
Farrand vs Lazarus 2002 - A car dealer put a notice on a car that the mileage is incorrect even though he knew that the reading was grossly incorrect. This was held to be misrepresentation.
Suppression of Material and Vital Facts
R vs Kylsant 1932- Company prospectus said that company was regularly paying dividends, which implied that is was making profit. However, it did not say that company was making losses and dividends were being paid from war time accumulated profits.
Expression of Opinion
Merely expressing an opinion is not misrepresentation.
Bisset vs Wilkinsen 1927 - The seller was aware that the land was being purchased for sheep farming and he expressed an opinion that the land could carry 200 sheep. It turned out that the land was no suitable for sheep farming. The seller was not held liable.
Section 19 says that any contract which is induced by Coercion, Fraud, or Misrepresentation is voidable at the option of the party whose consent was caused due to coercion, fraud, or misrepresentation.
However, if the consent is obtained by misrepresentation of a fact or silence amounting to fraud, the contract is not voidable if the party whose consent was so caused was able to discover it with due diligence. Also, a fraud or misrepresentation that did not cause a party to give consent, does not render a contract voidable.
Section 19 A says that when an agreement is created due to a consent induced by undue influence, such an agreement is a contract voidable at the option of the contract whose consent is so caused.
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