Misrepresentation In Contract Law Analysis

A misrepresentation is a false statement of fact, made knowingly or otherwise, which induces the representee to enter into the contract. For the statement to be proven to be a misrepresentation, the plaintiff must prove that the statement is false and also that they would not have entered into the contract had they been aware of its falsity. If proven to be a misrepresentation, the contract may become void. The plaintiff then has the option to rescind the contract or to refuse to perform their part of the contract, and they may also be entitled to receive damages.

The false statement made cannot be considered to be a misrepresentation if it is an opinion, unless the opinion is made by someone who is in a position to know the facts. Silence

There are three main types of mistake: common mistake, mutual mistake, and unilateral mistake. Common mistake occurs when both parties make the same mistake. They are in agreement but their agreement is based on falsities. Mutual mistake occurs when both parties make a mistake but their mistakes are different. In this case, there is no meeting of the minds. Unilateral mistake is when only one party makes a

Res extincta refers to when the subject matter of the contract does not exist despite both parties believing that it does. In the case of Couturier v Hastie (1856), a contract was made for goods which had perished and been disposed of. As the contract had been established after the goods had perished, it was held to be void. Res sua applies where the party agrees to buy something which they already own, for example leasing something which has been left to them in a will. A mistake as to quality is defined within very narrow limits, and only applies when the existence of a certain quality renders the subject matter to be different to what it was believed to be. In the case of Leaf v International Galleries (1950), Leaf purchased a painting which both parties believed to be by Constable. The claimant later discovered that it was not a Constable painting. Leaf’s claim for mistake was unsuccessful as the judge ruled that he believed he was buying a painting and he got a