He Contract Between Wfc and Michael Was a Contract

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Consider the rights, duties and remedies of WFC and of Michael if WFC decided to terminate the contract with Michael and engage a replacement contractor. The contract between WFC and Michael was a contract for the supply of goods and services under the Supply of Goods and Services Act 1982. The two issues in this scenario include one of misrepresentation and also a breach of the implied terms of the Supply of Goods and Services Act, s13 and s14. An actionable misrepresentation is a false statement during the negotiation stage that induces the other party, or the representee into entering that contract, and is a statement of fact rather than one of opinion. It is a vitiating factor which means that the validity of the contract is affected and the contract is considered to be voidable, and therefore can be set aside if the innocent party chooses to do so. There are three types of misrepresentation, negligent misrepresentation under Common Law, negligent misrepresentation under Statute, innocent misrepresentation and fraudulent misrepresentation. Firstly, a negligent misrepresentation under Common Law is when a statement is made carelessly, and there has been a breach of duty of care as to whether or not it was false which was established in the Hedley Byrne V Heller case. In this case the bank false gave information that one of their customers for which Hedley Byrne was to provide advertising work for. In the obiter the HL stated that there would be liability for a negligent misrepresentation if the representor has some knowledge or skill relevant to the subject matter of the contract and he can reasonably foresee that the other party will rely on that statement. The remedies available for a negligent misrepresentation under Common Law is a rescission and/or damages under tort in order to put the claimant back in the position he was before the tort was committed.

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