UNLOCKING CONTRACT LAW
Vitiating Factors: Misrepresentation
(see Chapter 9 of Unlocking Contract Law, Third Edition)
Jessie visited electronic store Pixons aiming to purchase a new laptop computer.
Alfred, a computer salesman recommended the new Bony Miao. He informed Jessie
that this laptop is the most powerful in the market, that it has a large hard disk and the
capacity to write DVDs. He offered Jessie the computer manual to check. Jessie not
knowing anything about the technical characteristics of computers declined, and went
ahead to purchase the laptop. Jessie subsequently realised that this laptop was not the
best available and lacked the ability to write DVDs.
Advise Jessie.
In resolving problem questions it is best to use the ISAC formula:
• Identify the issues
• State the law
• Analyse
• Conclude.
Relevant Issues: Misrepresentation; incorporation of terms into contracts; breach of contract,
Sale of Goods Act 1979.
Law and Analysis: Jessie may have a claim both for misrepresentation and breach of
contract. Before analysing the situation however it is essential to determine which statements
could give rise to claims. Alfred made three statements, one as to this laptop being the best in
the market, one as to its hard disk and one as to its DVD writer. Two of those statements are
relevant in Jessie's complaint. The statement that this laptop is the best in the market lacks
sufficient detail to be incorporated as a term of the contract (Bisset v Wilkinson [1927] AC
177) and is likely to be a mere sales puff. Its status as a puff, or uninformed opinion will also
preclude it from being considered as a statement giving rise to a misrepresentation. The
statement as to the laptop's ability to write DVDs could lead to a finding of misrepresentation if
it were a false statement of existing fact that induced Jessie to enter into the contract. Jessie
is likely to be successful on this point as she declined to inspect the manual and relied instead
on the statement (Redgrave v Hurd (1881) 20 Ch D 1). As the statement relating to the DVD
writer is part of the description of the product, under the Sale of Goods Act 1979 section 13,
the lack of a DVD writer will constitute a breach of contract.
Conclusion: Jessie will be able to either void the contract for misrepresentation on the DVD
writer issue, or obtain damages, or terminate the contract for breach of contract. She is less
likely to be successful on a complaint based upon the other statements.
Summary: The main relevant issues are misrepresentation and breach of contract. Jessie is
likely to successfully void the contract.
Unlocking Contract Law Third Edition
© Ioannis Glinavos 2011