Contract Law - Seminar 15 Misrepresentations 1&2 Hooley R, 'Damages and Misrepresentation Act 1967' [1991] 107 (Oct) LQR 547-551 · Royscot Trust Ltd v Rogerson C claimed for misrepresentation under s2(1) raised 3 issues o 1 - Whether the measure of damages for a misrepresentation giving rise to a cause of action under s2(1) was to put the claimant in the position they would have been if they never entered into the contract or to put them in the position they would have been if the misrepresentation had been true o 2 - If tortious measure is the correct one, whether it is a measure where the tort is of fraudulent representation, or whether it is negligence o 3 - Whether the wrongful sale by D was novus actus interveniens which would break the chain of causation . Balcombe and Ralph Gibson - s2(1) intended damages to be recoverable to the same extent as if the misrep has been made fraudulently . Damages for fraudulent misrep are assessed according to tortious measure and the representee is entitled to recover compensation for any loss directly from the fraudulent statement · Another interpretation o 'That person shall be liabe in damages notwithstanding that at common law damages were only available for misrepresentations proved be fraudulent o Interprets damages to be contractual o Ignores that before Act common law damages were recoverable for negligent misrepresentation - Hedley Byrne Beale H, 'Points on Misrepresentation' [1995] 111 (Jul) LQR 385-389 Thomas Witter Ltd v T.B.P. Industries Ltd - concerned sale of business, alleged sellers had made a number of misrepresentation about accounts and profit estimates · Allegation sellers had been reckless in giving a profit estimate on one basis and a second forecast on a different basis without telling buyers about change · Held rescission was no longer possible as wasn't now possible to restore the parties to their original position · Judge held, the power to award damages under section 2(2) doesn't depend on an extant right to rescission . Interest relating to a clause stating that the written agreement contained the 'entire agreement' and excluding liability for misrepresentation except for specified term o Held where a statement has become a warranty under the contract, a clause of this type will not prevent the other party from pursuing a remedy for misrepresentation if the statement is untrue o As a matter of construction such a clause doesn't prevent a party showing later that he had relied on some representation not mentioned in the schedule o Clause was unreasonable - clause tried to exclude liability for any type of misrepresentation including fraud
Bisset v Wilkinson [1927] AC 177 · D was purchaser of land in New Zealand which was purchased by C for the purpose of sheep farming · During purchase process, C informed D that the land being purchased was capable of sustaining 2tttttt sheep . After purchase, D discovered that it was only possible if very careful land management was carried out, and