Law of Tort

Topics: Misrepresentation, Rescission, Contract law Pages: 3 (1021 words) Published: March 5, 2013
Paul, a contractor, owned a corner shop where he ran a news agent stand and a tobacconist business. Neil advertised the business and premises for sale. Having seen the advertisement, Jenny visited the premises from which she lived 20 minutes away and was told by Paul that the purchase would be the best bargain in town and that the profits were 40,000 pounds per annum, and that if she didn’t believe him she should look at the accounts which she declined but had she done so she would have discovered that the profits had never exceeded 25,000 pounds and were on a downward trend. Paul also told jenny that it was very busy especially on a Saturday and she may not be able to move because of the customer’s traffic. Paul told Jenny that he had obtained a planning permission for the development of an off-licence extension to the business which shortly after their conversation he was contacted by the local authority that the permission had been denied. Paul didn’t communicate this with Jenny. Paul continued to keep silent on the denied permission and told Jenny that she would have no problem extending the business so that is could take in about 80 walk in customers at any one time. Having entered into a written contract to purchase the premises Paul mentioned of the changes that took place. Advise Jenny Issues

Whether or not Pauls actions contributed to misrepresentation, if yes what remedies are available to Jenny •Are there any arguments available to Paul as it relates to counter claiming the action of misrepresentation brought against him

A misrepresentation is a false statement of fact, inducing another to enter into a contract. There are different types of misrepresentation. Fraudulent misrep, negligent misrep and innocent misrep. •A fraudulent misrepresentation is found where the representor makes a statement of fact either knowingly, without belief in its truth, recklessly or carelessly as to whether it is true or...
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