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Formative Exercises Misrep

This document provides sample questions and a problem question regarding misrepresentation in contract law. The sample questions cover topics like actionable misrepresentation, statements of fact/opinion/future intention, when silence does not constitute misrepresentation, fraudulent/negligent/innocent misrepresentation, and damages. The problem question describes two scenarios where a doctor and football manager were misled in business transactions, and asks how they could seek legal recourse.

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RedMacha
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146 views

Formative Exercises Misrep

This document provides sample questions and a problem question regarding misrepresentation in contract law. The sample questions cover topics like actionable misrepresentation, statements of fact/opinion/future intention, when silence does not constitute misrepresentation, fraudulent/negligent/innocent misrepresentation, and damages. The problem question describes two scenarios where a doctor and football manager were misled in business transactions, and asks how they could seek legal recourse.

Uploaded by

RedMacha
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FORMATIVE EXERCISES: MISREPRESENTATION

1. What is a vitiating factor?

2. What is the difference between representation and terms?

3. What is an actionable misrepresentation?

4. Damages for misrepresentation are calculated according to …………………………..


(contractual/tortious) principles.

5. Explain the following:-

(a) Statement of fact

(b) Statement of opinion

(c) Statement of future intention

6. Why is it that silence does not amount to misrepresentation?

7. Explain what you understand by `Caveat Emptor’

8. Explain the following:-

a. Fraudulent Misrepresentation

b. Negligent Misrepresentation

c. Innocent Misrepresentation

9. What are the changes made by S.2(1) of (2) of the Misrepresentation Act 1967

10. How are damages quantified for:-

a. Fraudulent Misrepresentation

b. Negligent Misstatement

c. S.2(1) MA 1967

d. S.2(2) MA 1967

11. Which is a better cause of action today between: an action for breach of
contract or misrepresentation?
PROBLEM QUESTION:
QUESTION ONE

Dr. Anson decides to sell his private medical practice. In May, Dr. Chitty expresses an
interest in purchasing the business and negotiations begin. Dr. Anson, in the course
of the negotiations, tells Dr. Chitty that `everything is splendid at the moment. I have
more work than I could possibly want’ and that his practice would be an excellent
opportunity for a young doctor such as yourself. Dr. Anson offers to show Dr. Chitty
the accounts, which show a profit of £80,000 per annum, but Dr. Chitty is so
impressed that he decides not to bother. He is relieved to hear that Dr. Anson is
planning to retire, as he knows him to be popular with his patients. He asks,
however, for more time to consider his position. Dr. Anson (falsely) tells him that he
has two more young doctors coming to visit the practice the next day and he fully
expects one of them to make him an offer. This prompts Dr. Chitty to offer the full
asking price immediately, which Dr. Anson accepts.

Having operated the practice for six months, it becomes clear to Dr. Chitty that there
is no way the practice could have possibly shown a profit of £80,000 per annum. His
own accountant examines the accounts and informs him that the sum was greatly
exaggerated. He has also found out that, having taken a round-the-world cruise, Dr.
Anson plans to set up a private medical practice nearby and has been contacting his
former patients to move to Dr. Anson’s practice and, if this occurs, his accountant
informs him that the practice will no longer be financially viable.

Advise Dr. Chitty.


QUESTION TWO

Kingston is a football agent and is trying to negotiate a deal for one of his players,
Sam, at a top football club. He is particularly keen to sell Sam since he has noticed a
dramatic deterioration in his football skills recently and wants to get rid of him. He
enters into negotiations with Roman, the manager of Premier FC. Kingston tells
Roman that he considers “Sam is a star player, one of the best on the field. He has
feet like magic.” Roman has never seen Sam play and so he asks his assistant
manager, Terry to watch him at the next game. Terry is busy that weekend and
doesn’t go. He tells Roman, however, that Sam is indeed a great player. Roman buys
Sam.

Roman is also interested in another of Kingston’s players, Perry. Roman has seen
him play many times and has been impressed by his physical fitness. He asks
Kingston whether Perry is currently fit and playing at a high standard. Kingston
replies that Perry has had the best season of his career and is on top form. Roman
asks for some time to consider this player and takes a short holiday in Monte Carlo.
While Roman is away Perry injures his ankle so badly that he cannot walk. Despite
the media reporting widely on the injury, Roman hears nothing. On his return he
agrees to buy Perry. At the first game that Sam plays, his lack of ability is
responsible for the team conceding five goals. To make matters worse, Perry’s injury
is so severe that he is unable to play throughout the season. The chairman of
Premier FC is furious about Roman’s decision to appoint these two players and
sacks him from his £50,000 a year job. In addition, Nikedas, the famous sports
brand, informs Roman that he will no longer be required for their latest advertising
campaign. This will lose Roman £100,000 of additional income.

Advise Roman.

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