8
CONTRACT LAW2: MISREPRESENTATION 8.1 Vocabulary synonyms • nouns from verbs • paraphrasing A Discuss the following questions.
1 What do you think is meant by misrepresentation in contract law? (Clue: remove the affixes to find the base word.)
2 The items in box a are connected with misrepresentation. Give an example of each kind of misrepresentation.
B Look up each noun in box b in a dictionary. 1 Is it countable, uncountable or both?
2 What is its legal meaning? 3 Can you think of a synonym? 4 What useful grammatical information can you find?
C Study the two lists of verbs in box c. 1 Match the verbs with similar meanings.
2 Make nouns from the verbs if possible.
D Look at the report of Esso Petroleum Company Ltd v Mardon on this page. Rewrite each
sentence to make paraphrases of the text. Use:
synonyms you have found yourself synonyms from Exercise B words from Exercise C passives where possible
any other words that are necessary Example: Mardon was interested in leasing a petrol station.
The defendant wanted to take a tenancy on a filling station.
E Study the information on misrepresentation on the opposite page. Then read one of the cases,
A, B or C, underneath the information.
1 What kind of misrepresentation was involved in the case?
2 Work in groups of three with one A, one B and one C. Give the facts of your case, in your own words. Reach a consensus on the judgment.
3 Listen to the judgments. Did you reach the same conclusions?
62 c a b
fraudulent innocent negligent
onus opinion party position redress reliance statement tenancy term warranty
lease sue
hold claim
breach
constitute cancel induce sign
break
rescind seek
comprise decide
persuade let
enter into prosecute
Esso Petroleum Company Ltd v Mardon [1976] QB 1, CA
Mardon was interested in leasing a petrol station. An experienced sales representative from Esso visited him and told him that sales of petrol would be 200,000 gallons in Year 3. Mardon entered into a three- year tenancy agreement for the petrol station and did all he could to promote business. However, the site was in a bad location, and Mardon sold only about 60,000 gallons in the third year. He lost money and could not pay Esso for the petrol they supplied. Esso sued Mardon for money due but Mardon claimed compensation from Esso for misrepresentation.
It was held by Lord Denning that Esso’s representative had special knowledge and skill which induced Mardon to take the tenancy. The forecast of petrol sales was wrong and this constituted a breach of warranty.
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