Disclosure Duties on those entering into contract
The claimants worked together as a five girl pop group. The defendants had signed a sponsorship agreement, but now resisted payment saying that one of the five, Geri, had given notice to leave the group, substantially changing what had been promised. The girls acknowledged that Geri had said she would leave, but insisted that no real intention to leave had existed.
Held: Generally, a person who is about to enter into an agreement is under no duty to disclose material facts which he knows but which the other party does not know. Here the group knew that the other party was relying upon a representation, and could not discharge the requirement to show that they did not know of its falsity, and were liable in damages to the defendant.
Arden J DBE
[2000] EWHC Ch 140
Bailii
England and Wales
Citing:
Cited – Royscot Trust Ltd v Rogerson 1991
Doyle -v- Olby (Ironmongers) Ltd was an appropriate way of assessing damages for an action under the Act, and damages are calculated on the basis of fraud.
A client misled into an investment is entitled to the measure of damages he would . .
Cited – Edgington v Fitzmaurice CA 7-Mar-1885
False Prospectus – Issuers liable in Deceit
The directors of a company issued a prospectus, falsely stating that the proceeds were to be used to complete alterations to the buildings of the company, to purchase horses and vans and to develop the trade of the company. In fact it was to pay off . .
Cited – Esso Petroleum Company Ltd v Mardon CA 6-Feb-1976
Statements had been made by employees of Esso in the course of pre-contractual negotiations with Mr Mardon, the prospective tenant of a petrol station. The statements related to the potential throughput of the station. Mr Mardon was persuaded by the . .
Cited – Smelter Corporation v O’Driscoll 1977
(Ireland) In an action for misrepresentation, it did not matter that the representation was made by an agent who did not know that the representation was untrue. . .
Cited – Schneider v Heath 1813
A ship was sold ‘to be taken with all faults’. In fact the vendor knew that she was unseaworthy. The particulars of sale stated that her hull was ‘nearly as good as when launched’. In fact the hull was rotten and the captain took her to a place . .
Cited – Reynell v Sprye 1852
. .
Cited – Walters v Morgan 1861
A person may make a representation by conduct if he fails to correct an impression given by his conduct. . .
Cited – With v O’Flanagan CA 1936
When negotiating to enter into a contract, a person may have a duty to disclose material facts which come to his notice before the conclusion of a contract if they falsify a representation previously made by him. A representation as to the profits . .
Cited – Nottingham Patent Brick Co v Butler 1886
A solicitor stated that he was not aware that property was subject to any restrictions, but his failure to add that he had not read the relevant deeds made his statement a misrepresentation. . .
Cited – Trail v Baring CA 1864
(Orse Traill v Baring) The court considered a misrepresentation by conduct before contract. Turner LJ said: ‘I take it to be quite clear, that if a person makes a representation by which he induces another to take a particular course, and the . .
Cited – Brown v Raphael 1958
This was a sale of an absolute reversion in a trust fund. The particulars stated that: ‘Estate duty will be payable on the death of the annuitant who is believed to have no aggregable estate’ and the name of the solicitors who prepared the . .
Cited – Investors Compensation Scheme Ltd v West Bromwich Building Society HL 19-Jun-1997
Account taken of circumstances wihout ambiguity
The respondent gave advice on home income plans. The individual claimants had assigned their initial claims to the scheme, but later sought also to have their mortgages in favour of the respondent set aside.
Held: Investors having once . .
Cited – Horsfall v Thomas 1852
It is a necessary requirement for an action in misrepresentation, that the misrepresentation induced the other party to enter into the contract. . .
Cited – Smith v London and House Property Corporation CA 1884
Bowen LJ said: ‘In considering whether there was a misrepresentation, I will first deal with the argument that the particulars only contain a statement of opinion about the tenant. It is material to observe that it is often fallaciously assumed that . .
Cited – Smith v Chadwick HL 18-Feb-1884
Unclear Words Insufficient as Representation
A purchaser claimed to have entered into the contract in reliance on the truth of a misrepresentation by the seller. The plaintiff claimed damages for deceit through having been induced to buy shares in an iron company by false representations in a . .
Cited by:
See Also – Spice Girls Ltd v Aprilla World Service BV ChD 5-Apr-2000
It was possible through conduct to make representations which could induce the other party to enter into a contract. Here the contract was entered into at a time when one of the group had decided to leave, but in the period before the contract had . .
See also – Spice Girls Ltd v Aprilla World Service BV (No 3) ChD 20-Jul-2000
After trials and hearings as to the facts, as to damages, and as to costs, and where the parties had previously been shown draft judgments, and been invited to comment, the applicants sought to appeal, on the grounds that losses which had been . .
See Also – Spice Girls Limited v Aprilia World Service Bv CA 24-Jan-2002
When considering the statutory right to rescind for innocent misrepresentation, the representation should be interpreted to bear the meaning in which it would reasonably be understood by the claimant, the natural and ordinary meaning which would be . .
Lists of cited by and citing cases may be incomplete.
Contract, Torts – Other
Leading Case
Updated: 19 January 2022; Ref: scu.135788