Facts
During an economic boom in the rubber trade 1910 (at the end of the Amazon rubber boom), Heilbut, Symons & Co were merchants who were underwriting shares of what they claimed was a rubber business, called the Filisola Rubber and Produce Estates, Limited in Mexico. Buckleton called up a manager at Heilbut to inquire about the shares. In response to the questions, the manager confirmed that they were "bringing out a rubber company". Based on this statement, Buckleton purchased a large number of shares. The company turned out to have far fewer rubber trees than expected. The shares performed very poorly. Buckleton sued for breach of warranty.
At trial the Court found that Heilbut made misrepresentation but was not done fraudulently. Nevertheless, at trial it was found that there was a warranty in the statement regarding the rubber company. The claimant, Buckleton, did not succeed at trial.
Judgment
The House of Lords held that no damages could be payable because it was not a fraudulent misrepresentation. Lord Moulton identified two ways that the action could be successful. First, if the plaintiff could show fraudulent misrepresentation "or what is equivalent thereto, must be made recklessly, not caring whether it be true or not." Second, if there was intent ( animus contrahendi ) [1] to be held to a promise then there may be a collateral contract, that would bind Heilbut to their representation. However, Lord Moulton stated that such collateral contracts would be rare, and on the facts none was found. Lord Moulton said,
It is, my Lords, of the greatest importance, in my opinion, that this House should maintain in its full integrity the principle that a person is not liable in damages for an innocent misrepresentation, no matter in what way or under what form the attack is made. In the present case the statement was made in answer to an inquiry for information. There is nothing which can by any possibility be taken as evidence of an intention on the part of either or both of the parties that there should be a contractual liability in respect of the accuracy of the statement. It is a representation as to a specific thing and nothing more.
Delict is a term in civil and mixed law jurisdictions whose exact meaning varies from jurisdiction to jurisdiction but is always centred on the notion of wrongful conduct.
In contract law, a warranty is a promise which is not a condition of the contract or an innominate term: (1) it is a term "not going to the root of the contract", and (2) which only entitles the innocent party to damages if it is breached: i.e. the warranty is not true or the defaulting party does not perform the contract in accordance with the terms of the warranty. A warranty is not a guarantee. It is a mere promise. It may be enforced if it is breached by an award for the legal remedy of damages.
Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 is an English tort law case on economic loss in English tort law resulting from a negligent misstatement. Prior to the decision, the notion that a party may owe another a duty of care for statements made in reliance had been rejected, with the only remedy for such losses being in contract law. The House of Lords overruled the previous position, in recognising liability for pure economic loss not arising from a contractual relationship, applying to commercial negligence the principle of "assumption of responsibility".
In common law jurisdictions, a misrepresentation is an untrue or misleading statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The misled party may normally rescind the contract, and sometimes may be awarded damages as well.
Derry v Peek [1889] UKHL 1 is a case on English contract law, fraudulent misstatement, and the tort of deceit.
A contractual term is "any provision forming part of a contract". Each term gives rise to a contractual obligation, the breach of which may give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the contract.
English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth, from membership in the European Union, continuing membership in Unidroit, and to a lesser extent the United States. Any agreement that is enforceable in court is a contract. A contract is a voluntary obligation, contrasting to the duty to not violate others rights in tort or unjust enrichment. English law places a high value on ensuring people have truly consented to the deals that bind them in court, so long as they comply with statutory and human rights.
A contract is a legally enforceable agreement that creates, defines, and governs mutual rights and obligations among its parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured.
Soden v British and Commonwealth Holdings plc [1998] AC 298 is a UK insolvency law case, decided in the House of Lords. It decided that damages for negligent misrepresentation inducing purchase of company shares are not "sums due" to shareholders for the purpose of the Insolvency Act 1986, s 74(2)(f), so that a claim for such damages is not subordinated to claims from other creditors.
Chandelor v Lopus (1603) 79 ER 3 is a famous case in the common law of England. It stands for the distinction between warranties and mere affirmations and announced the rule of caveat emptor.
Candler v Crane, Christmas & Co [1951] 2 KB 164 is an English tort law case on negligent misstatement.
Contractual terms in English law is a topic which deals with four main issues.
Interpreting contracts in English law is an area of English contract law, which concerns how the courts decide what an agreement means. It is settled law that the process is based on the objective view of a reasonable person, given the context in which the contracting parties made their agreement. This approach marks a break with previous a more rigid modes of interpretation before the 1970s, where courts paid closer attention to the formal expression of the parties' intentions and took more of a literal view of what they had said.
Esso Petroleum Co Ltd v Mardon [1976] EWCA Civ 4 is an English contract law case, concerning misrepresentation. It holds that the divide between a statement of opinion and fact becomes more factual if one holds himself out as having expert knowledge.
With v O’Flanagan [1936] Ch 575 is an English contract law case, concerning misrepresentation. It holds that there is a duty to disclose material changes in circumstances that were represented to be true in negotiations.
Howard Marine and Dredging Co Ltd v A Ogden & Sons (Excavations) Ltd [1978] QB 574 is an English contract law case, concerning misrepresentation. It explains the test of "reasonable grounds for belief" under the Misrepresentation Act 1967 s 2(1), and raises the issue of the reasonableness test under s 3.
Thomas Witter Ltd v TBP Industries [1996] 2 All ER 573 is an English contract law case, concerning misrepresentation. Doubt has been cast in its decision as to availability of rescission by Floods of Queensferry Ltd v Shand Construction Ltd and Government of Zanzibar v British Aerospace Ltd.
HIH Casualty and General Insurance Ltd v Chase Manhattan Bank[2003] UKHL 6 is an English contract law case, concerning misrepresentation.
Oscar Chess Ltd v Williams [1957] EWCA Civ 5 is an English contract law case, concerning the difference between a term and a representation.
Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd [1965] EWCA Civ 2 is an English contract law case, concerning the difference between a representation and a contract term.
