1
Misrepresentation
Principle
Case
(1) A false statement
Exception to a false statement: if a true
representation is falsified by later events, the
change in circumstances should be
communicated
With v O’Flanagan [1936] Ch 575
Implied representations: half-truths lead to
actionable misrepresentation
Dimmock v Hallett (1866) LR 2 Ch App 21;
Spice Girls Ltd v Aprilia World Service BV
[2002] EWCA Civ 15
(2) Existing or past fact
An opinion is not usually a statement of fact
and therefore not an actionable
misrepresentation
Bisset v Wilkinson [1927] AC 177;
Hummingbird Motors v Hobbs [1986] RTR 726
An opinion which is either not held or could not
be held by a reasonable person with the
speaker’s knowledge is a statement of fact
Smith v Land and House Property Corporation
(1884) 28 Ch D 7
If there is an unequal skill, knowledge, and
bargaining strength, there is misrepresentation
Esso Petroleum Co Ltd v Mardon [1976] 2 All
ER 5
An actionable misrepresentation is a false
statement of existing fact (i.e. statement of
intention)
Edgington v Fitzmaurice (1885) 29 Ch D 459;
East v Maurer [1991] 1 WLR 461
Misrepresentations of law amount to actionable
misrepresentations
Kleinwort Benson v Lincoln CC [1999] 2 AC
349;
Pankhania v Hackney LBC [2002] EWHC 2441
(Ch)
(3) Made by one party to another
If a misrepresentation is made to a third party
and, objectively, it is likely that the
misrepresentation will be passed to the other
contracting party, it will be actionable
Cramaso LLP v Ogilvie-Grant [2014] AC 1093
(4) Induces the contract
The false statement should be the main reason
for entering into the contract
Attwood v Small (1838) 6 LC & Fin 232
Actual and complete knowledge of the true
facts will defeat the representee’s claim
Redgrave v Hurd (1881) 20 Ch D 1
