Professor Catharine MacMillan

2019- 2020

THE DICKSON POON SCHOOL OF LAW

KING’S COLLEGE LONDON

CONTRACT – VITIATING FACTORS – CASE LIST

MISREPRESENTATION
Anson, chapter 9
McKendrick, casebook, chapter 17

You may also wish to refer also to one of:

Davies, JC Smith’s The Law of Contract, ch 16
McKendrick, Contract Law, ch 13
O’Sullivan & Hilliard, The Law of Contract, ch 10

1. The difference between misrepresentations and warranties

Heilbut, Symons & Co v Buckleton [1913] AC 30
Oscar Chess Ltd v Williams [1957] 1 WLR 370

2. The requirements of an actionable misrepresentation

Lambert v Co-Operative Insurance Society Ltd [1975] 2 Lloyd's Rep. 485
Dimmock v Hallet [1860] L.R. 2 Ch App 21
Gordon v Sellico (1986) 278 EG 53

A. The representation must be false

Dimmock v Hallet [1860] L.R. Ch. App. 21
With v O'Flanagan [1936] Ch. 575
Misrepresentation Act 1967, s. 2(1)

Conlon v Simms [2006] EWHC 401 – non-disclosure

B. The representation must be one of fact, not of opinion

Bisset v Wilkinson [1927] AC 177
Esso Petroleum Ltd v Mardon [1976] QB 801
Smith v Land and House Property Corp (1884) 28 Ch D 7

C. The representation must be one of fact, not of intention

Wales v Wadham [1977] 1 WLR 199
Edgington v Fitzmaurice [1885] 29 Ch D 459
Limit No2 Ltd v Axa Versicherung AG [2008] EWCA Civ 1231

D. May the representation be one of law?

Pankhania v Hackney London Borough Council [2002] EWHC 2441 (Ch)

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 E. The representation must be addressed to the party misled
Commercial Banking Co of Sydney v RH Brown and Co [1972] 2 Lloyd's Rep 360

F. The representation must be intended to be acted upon

Dimmock v Hallet (1866) LR 2 Ch App 21
Peek v Gurney [1873] L.R. 6 HL 377

G. The representation must induce the contract and it must (in

that sense) be material
JEB Fasteners v Marks, Bloom and Co [1983] 1 All ER 583
Horsfall v Thomas (1862) 1 H & C 90
Smith v Chadwick (1884) 9 App Cas 187
Atwood v Small (1838) 6 Cl & F 232
Redgrave v Hurd (1881) 20 Ch D 1
Edgington v Fitzmaurice [1885] 29 Ch D 459
Zurich Insurance Co plc v Hayward [2016] UKSC 48; [2016] 3 WLR 637

BV Nederlandse Industrie van Eiproducten v Rembrandt Enterprises, Inc [2019]

EWCA Civ 596

3. Types of misrepresentations
A. Fraudulent
Derry v Peek (1889) 14 App. Cas. 337
Doyle v Olby (Ironmongers) ltd [1969] 2 Q.B. 158
Archer v Brown [1984] 2 All E.R. 267
East v Maurer [1991] 2 All E.R. 733
Zurich Insurance Co plc v Hayward [2016] UKSC 48

B. Innocent
Newbiggin v Adam (1866) 34 Ch. D. 582
Whittington v Seal Hayne (1900) 82 LT 49

C. Negligent
Hedley Byrne & Co Ltd v Heller Partners Ltd (1964) A.C. 465; [1963] 3 WLR 101;
[1963] 2 All ER 375

(1) The Duty of Care Principle

Hedley Byrne & Co Ltd v Heller Partners Ltd (1964)
Playboy Club London Ltd v Banca Nazionale del Lavoro SpA [2018] UKSC 43

(2) The Assumption of Responsibility Principle

Henderson v Merrett Syndicates Ltd [1995] 2 A.C. 145; [1994] 3 W.L.R. 761;
[1994] 3 All E.R. 506
P&P Property Ltd v Owen White & Catlin LLP; Dreamvar (UK) Ltd v Mishcon De
Reya [2018] EWCA Civ 1082

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 (3) Concurrent duties in tort and contract
Esso Petroleum Co Ltd v Mardon (1976)
Wellesley Partners LLP v Withers LLP [2015] EWCA Civ 1146

D Statutory
Misrepresentation Act 1967, s. 2(1)
Resolute Maritime Inc v Nippon Kaiji Kyokai [1983] 2 All Er 1
Howard Marine and Dredging Co v Ogden & Sons Ltd [1978] 2 WLR 514; [1978]
QB 574; [1978] 2 All ER 355
Royscot Trust Ltd v Rogerson [1991] 2 Q.B. 297
Spice Girls Ltd v Aprilia World Service BV [2002] EWCA Civ 15

Remedies for misrepresentations

A. Damages
(1) Fraudulent Misrepresentation
Archer v Brown [1984] 2 All ER 267
East v Maurer [1991] 2 All ER 733
Doyle v Olby (Ironmongers) Ltd [1969] 2 QB 158
Smith New Court Securities Ltd v Citibank N.A. [1997] A.C. 254
4 Eng Ltd v Harper and Simpson [2008] EWHC 915 (Ch)

(2) Negligent Misrepresentation

Hedley Byrne & Co Ltd v Heller Partners Ltd (1964) A.C. 465; [1963] 3 WLR 101;
[1963] 2 All ER 375
Esso Petroleum v Mardon (1976)
IFE Fund SA v GSI International [2007] EWCA Civ 811
South Australia Asset Management Corp v York Montague Ltd [1997] AC 191
Hughes-Holland v BPE Solicitors [2017] UKSC 21

(3) Misrepresentation Act 1967, s. 2

(a) Subsection (1)
Royscot Trust v Rogerson (1991)
Forest International Gaskets Limited v. Fosters Marketing Limited [2005] EWCA
Civ 700 [at paras 11-17]
Foster v Action Aviation Ltd [2013] EWHC 2439 (Comm); appeal allowed [2014]
EWCA Civ 1368
Yam Seng Pte Ltd v International Trade Corporation Ltd [2013] EWHC 111 (QB);
[2013] 1 All ER (Comm) 1321
Taberna Eruope CDO II plc v Selskabet AF 1.September 2008 (formerly Roskilde
Bank A/S) [2016] EWCA Civ 1262

(b) Subsection (2)

William Sindall plc v Cambridgeshire County Council [1994] 3 All ER 932
Salt v Stratstone Specialist Ltd (t/a Stratstone Cadillac Newcastle) [2015] EWCA
Civ 745

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 (4) Misrepresentation Act, s. 3
Misrepresentation Act, s. 3
Unfair Contract Terms Act 1977, s. 11(1):

Raiffeisen Zenbtralbank Osterreich AG v Royal Bank of Scotland plc [2010] EWHC

1392 (Comm)
AXA Sun Life Services plc v Campbell Martin Ltd [2011] EWCA Civ 133

Misrepresentation Act 1967, s3(2)

Consumer Rights Act, 2015, s. 62

IFE Fund SA v GSI International [2007] EWCA Civ 811

Taberna Eruope CDO II plc v Selskabet AF 1.September 2008 (formerly Roskilde
Bank A/S) [2016] EWCA Civ 1262, [2017] 3 All ER 1046

B. Rescission
(1) The nature of rescission
Car & Universal Finance v Caldwell [1965] 1 QB 525
Inntrepreneur Pub Co (CPC) Ltd v Sweeney [2002] EWHC 1060, The Times June
26, 2002

(2) Misrepresentation incorporated as a term of the contract

Pennsylvania Shipping Co v Compagnie Nationale de Navigation [1936] 2 All ER
1167
Misrepresentation Act 1967, s. 1(a)

(3) The plaintiff's choice between seeking rescission and

claiming damages for fraud (where a fraudulent misrepresentation)
Archer v Brown [1984] 2 All ER 267

(4) Rescission and an indemnity

Whittington v Seal Hayne (1900) 82 LT 49

(5) Restrictions on the right to rescind

(a) Restitution impossible
Erlanger v New Sombrero Phosphate Co (1873) 2 App. Cas. 1218 at 1278
T.S.B. Bank plc v Camfield [1995] 1 W.L.R. 430
Salt v Stratstone Specialist Ltd (t/a Stratstone Cadillac Newcastle) (2015)

(b) Affirmation/Lapse of Time, Estoppel

Leaf v International Galleries [1950] 2 KB 86
Salt v Stratstone Specialist Ltd (t/a Stratstone Cadillac Newcastle) (2015)
Long v Lloyd [1958] 1 WLR 753
Peyman v Lanjani [1985] 2 WLR 154; [1984] 3 All ER 703

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 (c) Third party rights
Phillips v Brooks [1919] 2 KB 243
Car & Universal Finance v Caldwell [1965] 1 QB 525

(6) Exclusions or restrictions of liability for misrepresentations

Misrepresentation Act, s 3
Unfair Contract Terms Act 1977
Raiffeisen Zenbtralbank Osterreich AG v Royal Bank of Scotland plc [2010] EWHC
1392 (Comm)
AXA Sun Life Services plc v Campbell Martin Ltd [2011] EWCA Civ 133
IFE Fund SA v GSI International [2007] EWCA Civ 811
HIH Casualty & General Insurance Ltd v Chase Manhattan Bank, Chase Manhattan
Bank v HIH Casualty & General Insurance Ltd [2003] UKHL 6, [2003] 1 All E.R.
(Comm) 349
First Tower Trustees Ltd and another v CDS (Superstores International) Ltd
[2017] EWHC 891 (Ch)

Consumer Rights Act 2015, s. 62

MISTAKE
Anson, chapter 8
McKendrick, casebook, chapter 16

You may also wish to refer also to one of:

Davies, JC Smith’s The Law of Contract, ch 6, ch 14, ch 22
McKendrick, Contract Law, ch 4, ch 14
O’Sullivan & Hilliard, The Law of Contract, ch 3, ch 14

I. MISTAKE AT COMMON LAW

A. INTRODUCTION
Brennan v Bolt Burdon [2004] EWCA Civ 1017

B. ABSENCE OF GENUINE AGREEMENT

Raffles v Wichelhaus (1864) 2 H. & C. 906

C. COMMON MISTAKE
1. Mistake as to the Existence of the Subject Matter
Couturier v Hastie (1852) 5 H.L.C. 673
McRae v Commonwealth Disposals Commission
(1951) 84 C.L.R. 377 (HCA)

2. Mistake as to the Possibility of Performance

(a) Physical Impossibility
Sheikh Brothers Ltd v Ochsner (1957), [1957]
A.C. 136
(b) Legal Impossibility
Cooper v Phibbs (1867) L.R. 2 H.L. 149

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 (c) Commercial Impossibility
Griffith v Brymer (1903) 19 T.L.R. 434

3. Mistake as to a quality of the Subject Matter

Bell v Lever Brothers, Ltd (1931), [1931] A.C. 161
Nicholson & Venn v Smith-Marriott (1947) 177 L.T. 189
Galloway v Galloway (1914) 30 T.L.R. 531 (KBD)
Associated Japanese Bank (International) Ltd v Credit
du Nord S.A. (1988), [1989] 1 W.L.R. 255
Great Peace Shipping Ltd v Tsavliris Salvage (International)
Ltd [2002] EWCA Civ 1407; [2002] 4 All ER 689 (CA)
Triple Seven MSN 27251 Ltd v Azman Air Services Ltd [2018]
EWHC 1348

4. Fundamental Mistake going to the Root of the Contract

Bell v Lever Brothers, Ltd (1931), [1931] A.C. 161.

D. UNILATERAL MISTAKE
1. Mistake as to the Promise
Smith v Hughes (1871) L.R. 6 Q.B. 597
Hartog v Colin & Shields (1939), [1939] 3 All E.R. 566

2. Mistake as to Identity
Hardman v Booth (1863) 1 H. & C. 803, 158 E.R. 1107
Cundy v Lindsay (1878) 3 App. Cas. 459
King's Norton Metal Co. v Edridge (1897) 14 T.L.R. 98
Phillips v Brooks Ltd (1919), [1919] 2 K.B. 243
Ingram v Little (1960), [1961] 1 Q.B. 31
Lewis v Averay (1971), [1972] 1 Q.B. 198
Shogun Finance Ltd v Hudson [2003] UKHL 62

II. MISTAKE IN EQUITY

A. WHEN IT OCCURS
Solle v Butcher [1950] 1 K.B. 671
Grist v Bailey (1966), [1967] Ch. 532
Clarion v National Provident Institution [2000] 2 All ER 265
Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd
[2002] EWCA Civ 1407
Pitt v Holt; Futter v Futter [2013] UKSC 26

B. THE EFFECT OF MISTAKE IN EQUITY

Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd
(2002)
Kyle Bay Ltd (t/a Astons Nightclub) v Underwriters [2006] EWHC
607

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 C. EQUITABLE RELIEF
1. Refusal of Specific Performance
Malins v Freeman (1837) 2 Keen 25; 48 E.R. 537
Tamplin v James (1880) 15 Ch.D. 215

2. Rescission
Solle v Butcher
Grist v Bailey
The Great Peace.

3. Rectification
F.E. Rose (London) Ltd v William Pim Jnr & Co. [1953]
2 Q.B. 450
Chartbrook Ltd v Persimmon Ltd [2009] UKHL 38
Daventry District Council v Daventry & District Housing Ltd
[2011] EWCA Civ 1153
FSHC Group Holdings Ltd v Glas Trust Corporation Ltd
[2019] EWCA Civ 1361

III. THE RELATIONSHIP BETWEEN COMMON LAW MISTAKE AND

MISTAKE IN EQUITY
Associated Japanese Bank (International) Ltd v Credit du Nord S.A.
(1988
Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd (2002)

DURESS
Anson, chapter 10
McKendrick, casebook, chapters 18-20

You may also wish to refer also to one of:

Davies, JC Smith’s The Law of Contract, ch 17, ch 18, ch 19
McKendrick, Contract Law, ch 17
O’Sullivan & Hilliard, The Law of Contract, ch 11, ch 12, ch 13

Universe Tankships of Monrovia v International Transport Workers Federation

("The Universe Sentinel") [1983] 1 A.C. 366

1. Forms of Duress
(a) to the person
Barton v Armstrong [1976] A.C. 104

(b) to goods
Skeate v Beale (1840) 11 Ad & E 983
The Siboen and The Sibotre [1976] 1 Lloyds Rep 293

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 (c) economic duress
The Siboen and The Sibotre [1976] 1 Lloyds Rep 293
Pao On v Lau Yiu Long [1980] A.C. 614
DSND Subsea v Petroleum Geo-Services (2000) [2000] B.L.R. 530
Atlas Express v Kafco (Importers and Distributors) Ltd [1989] 1 All ER 641
CTN Cash & Carry v Gallaher [1994] 4 All E.R. 714
R v A-G for England and Wales [2003] UKPC 22
Marsden v Barclays Bank plc [2016] EWHC 1601; [2016] 2 Lloyd’s Rep 420
Ukraine v Law Debenture Trust Corp Plc [2018] EWCA Civ 2026 – appeal pending

2. Effect of Duress
Barton v Armstrong [1976] A.C. 104
Halpern v Halpern [2007] EWCA Civ 291
North Ocean Shipping v Hyundai Construction [1979] 3 W.L.R. 129

3. Duress distinguished from commercial pressure

Alec Lobb Ltd v Total Oil [1983] 1 W.L.R. 87

4. Lawful act duress?

CTN Cash and Carry Ltd v Gallaher Ltd [1994] 4 All ER 714
Marsden v Barclays Bank plc [2016] EWHC 1601; [2016] 2 Lloyd’s Rep 420
Times Travel (UK) Ltd v Pakistan International Airlines Corporation [2019] EWCA
Civ 828

UNDUE INFLUENCE
Royal Bank of Scotland v Etridge (No 2) [2001] 3 WLR 1021

1. FORMS OF UNDUE INFLUENCE

Barclays Bank plc v O'Brien [1993] 4 All ER 417
Royal Bank of Scotland v Etridge (No 2) [2001] 3 WLR 1021

(a) ACTUAL
CIBC Mortgages plc v Pitt [1993] 4 All ER 433

(b) PRESUMED
RBS v Etridge (No 2)
Lloyds Bank v Bundy [1975] 1 Q.B. 326
RBS v Etridge (No 2)
Barclays Bank plc v O'Brien [1993] 4 All ER 417

2. MUST THE TRANSACTION BE MANIFESTLY

DISADVANTAGEOUS?
CIBC Mortgages plc v Pitt [1993] 4 All ER 433
RBS v Etridge (No 2) at [28-29]

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3. THE EFFECT OF UNDUE INFLUENCE
(a) WITH RESPECT TO THE WRONGDOER
Lloyds Bank v Bundy

(b) WITH RESPECT TO A THIRD PARTY

Barclay's Bank v O'Brien

UNCONSCIONABILITY AND INEQUALITY OF BARGAINING POWER

A. Unconscionability
Aylesford v Morris (1873) 8 Ch App 484
Fry v Lane (1888) 40 Ch D 312
Alec Lobb (Garages) Ltd v Total Oil (Great Britain) Ltd [1985] 1 WLR 173
Boustany v Pigott [1995] 69 P & CR 298
Credit Lyonnais Bank Nederland NV v Burch [1997] 1 All ER 144

B. An inequality of bargaining power?

Lloyds Bank Ltd v Bundy [1975] QB 326
National Westminster Bank plc v Morgan [1985] AC 686, 707-708