. Kleinworth Benson Ltd v Malaysia Mining Corp (1989) > used by businesses and frequently framed in ambiguous language > Aimed at encouraging a lender to advance funds to a third party · Associated British Ports v Ferryways NV (2009)- Per Kay LJ- ... a letter of comfort, properly so called, ... does not give rise to contractual liability. The label used by parties is not necessarily determinative. It is a matter of construction of the document as a whole. · RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH (2010) > Work began and progressed on the basis of a letter of intent. > Original negotiations were said to be 'subject to contract', but the Supreme Court highlighted that any intention not to be bound before signatures on a contract could be 'waived'. > The parties' conduct here indicated that they must have intended to create legal relations, and no longer required a signed contract. > Common law - no intention to create legal relations A Ford Motor Co Ltd v AEF (1969) - decision was based on context 1 Statute - > s.179 Trade Union and Labour Relations (Consolidation) Act 1992 - collective agreements are conclusively presumed not to be intended to be legally binding. They are only enforceable when the agreement is in writing and expressly stated to be legally enforceable. 1 Blue v Ashley (2017) > Preston v President of the Methodist conference (2013) Percy v Board of National Mission of the Church of Scotland (2005) - H of L held that a minister of the church had a contract with the church, although it might not be a contract of employment. > This refers to pre-contractual statements which induce a party to enter into a contract, but the statements turn out to be "false". > The law here is predominantly based on common law rules, however, there is now statutory intervention in the form of the Misrepresentation Act 1967 mainly as regards remedies. > Definition > Basic Requirements Ø Exceptions > Misrepresentation by Action/Conduct Ø Misrepresentation by Silence Ø Ø A false statement of fact or law, made by one contracting party to another, which induces the other party to enter into the contract. > During negotiations for the purchase of a house, seller tells prospective buyer that the central heating system is 'excellent'. > Subsequently, the sale is concluded and buyer finds out the central heating system malfunctions. > If buyer was induced by that statement to enter into the contract, a claim will arise in misrepresentation. > False statement must have been made by one contracting party to the other. > It must be a statement of fact or law, not intention or opinion.
> The statement must have induced the other party to enter into the contract. > The normal rule is that the false statement must have been made by, or on behalf of, the other contracting party. > If a person enters a contract on the basis of a misrepresentation