Misrepresentation in Business Law - 1672 Words

Introduction to Business Law- Assignment 1B Advise TLC Ltd. as to any possible action they may have for misrepresentation against answer Ltd. _____________________________________________________________________ Treitel in The Law of Contract (2003) defines a contract as: â€Å"An agreement giving rise to obligations which are enforced or recognised by law. The factor which distinguishes contractual from other legal obligations is that they are based on the agreement of the contracting parties.† This quote illustrates the basic criteria for a contract. A contract is a legally binding agreement between two or more parties, it can be written or oral. There is no mention of a written contract between TLC and†¦show more content†¦For this to happen it follows that the reasonable person would consider it an important fact in entering the contract. Museprime Properties Ltd v Adhill Properties Ltd (1990). Answer are the experts and Valentino is their representative, he inspects the needs of TLC and recommends the Bizarre Pentium IV. Therefore it is reasonable to assume that the statements made regarding reliability and suitability were representations made to induce the contract. The issue is whether Valentino purposefully made false statements, was reckless or innocent in those statements. A Fraudulent statement is knowing the statement to be false or being reckless to whether it’s false. Defined in Derry v Peek (1889) by Lord Herschell as a â€Å"false statement made knowingly or without belief in its truth or recklessly careless whether it be true or false†. Recklessly careless means the representee had foreseen it may be false but did not care. There is an element of dishonesty here. In fraudulent cases the burden of proof is on the claimant, this means the claimant must prove the defendants guilt. It’s very hard to prove a fraudulent misrepresentation; if unsuccessful the defendants’ representations are presumed innocent. Innocent misrepresentations are made when the representor genuinely believes the false statement. It would be unlikely that TLC could prove Valentino’sShow MoreRelatedThe Obligatory Elements For Establishing Fraudulent Misrepresentation1457 Words   |  6 PagesThe following essay will discuss the obligatory elements for establishing fraudulent misrepresentation. This explicit area of business law is reinforced by precedent cases which encapsulate and clarify the elements required to establish an argument for damages based on fraudulent misrepresentation. In light of this, the essay will arg ue in favour of Bob Wheelie, with support of relevant case law, that the reckless actions of Mr Spokes constitute the grounds for an action for fraud and damages toRead MoreThe Elements Required For Fraudulent Misrepresentation And If They Are Present1008 Words   |  5 PagesIntroduction This essay is going to discuss the elements required for fraudulent misrepresentation and if they are present in the situations of Mr Wheelie and Mr Spoke. Common law will be used to support Mr Wheelie’s intention of taking Mr Spoke to court. The components of fraudulent misrepresentation in this situation are seen through the actions that Mr Spoke took to seek agreement with Mr Wheelie in the contract. In these circumstances there was a statement of fact that was false pre-contractRead MoreContract Law Case Study1462 Words   |  6 PagesThe Business School | | Assignment Topic Due Date: Friday, noon, of week 8 Semester Two 2012 word count:1470 words 1.in this situation, first we need to identify if there is a legal binding contract, a contract is a agreement which the law will enforce, a contract is a part of common law, common law is also called custom law, it is made by the judge to protect the community against the crimes, when an issue goes to court and there is no statue law that covers it, a judge will hear the caseRead MoreSome Legal Case Studies1474 Words   |  6 PagesLegal Case Studies Question One The basic premise of this case has to do with contract law and how that is applied. Since Australian law follows the principles set down in English contract law (as is the case with most other English speaking countries), most of the basic legislation differs little from that basis. 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Although, when one party has a stronger position in the commercial market, he may take advantage of his position and contract away from fair legal rules . Incorporation of terms The common law finds that, in the absence of misrepresentation, when parties are signing an agreement it follows that they agree to the terms included . In L’estrange v Graucob (1934), Scrutton LJ stated that the general principle of incorporation of terms is thatRead Morebusiness law1127 Words   |  5 Pagesï » ¿ NAME: FIN NO.: BATCH NO.: MODULE: BUSINESS LAW LECTURER: MR MAHADEVAN LUKSHUMAYEH Question: In early 2013, Beauty property developer negotiated with Stylish over a new house in the eastern sector of Singapore. Beauty and Stylish had various meetings about the cost and finish of the house. At one of their meetings, Stylish asked Beauty whether the price of the house included curtains, blinds and window coverings. Beauty explained that all window coverings were provided for in the contractRead MoreBusiness Law: Exemption Clause961 Words   |  4 Pages1. An exemption is a clause in a contract that exempts or removes liability from one or both parties in certain circumstances. Exemption clauses are used frequently in business organization contract. These clauses apportion risk between the parties concerned and the law upholds them, assuming the parties negotiated them while drafting the contract 2. The two ways in which exemption clauses can be incorporated in a contract are: (1) Incorporation by notice and (2) Incorporation by signature.Read MoreAnalysis Of Carlill V Carbolic Smoke Ball Co1390 Words   |  6 Pagesas there was already a binding agreement in place between them. The law relating to this is that acceptance must be unconditional, that the offeree must have accepted the exact terms advocated by the offeror unconditionally; i.e. without establishing any additional terms which the offeror has not had the latitude to contemplate. The instigation of these additional new terms are referred to as a â€Å"counter offer†; its influence in law is to distinguish the original offer. For example, in Carlill v CarbolicRead MoreBusiness Law: Exemption Clause945 Words   |  4 Pages1. An exemption is a clause in a contract that exempts or removes liability from one or both parties in certain circumstances. Exemption clauses are used frequently in business organization contract. These clauses apportion risk between the parties concerned and the law upholds them, assuming the parties negotiated them while drafting the contract 2. The two ways in which exemption clauses can be incorporated in a contract are: (1) Incorporation by notice and (2) Incorporation by signature