The Obligatory Elements For Establishing Fraudulent Misrepresentation

1457 WordsSep 13, 20166 Pages
The following essay will discuss the obligatory elements for establishing fraudulent misrepresentation. This explicit area of business law is reinforced by precedent cases which encapsulate and clarify the elements required to establish an argument for damages based on fraudulent misrepresentation. In light of this, the essay will argue in favour of Bob Wheelie, with support of relevant case law, that the reckless actions of Mr Spokes constitute the grounds for an action for fraud and damages to the other party (Bob Wheelie). The sufficient evidence validates that: Mr Spokes held prior knowledge about the business claiming a false statement of fact; Mr Spokes provided the statement in order to induce Bob into entering the contract; Mr Spokes employed the use of misrepresentation knowing that such representation was false and would cause detrimental repercussions; and as a result Bob Wheelie suffered economic loss. Therefore, these findings indicate that Bob Wheelie can claim damages against Mr Spokes on the basis of fraudulent misrepresentation. The statutory prohibition of misleading or deceptive conduct under section 18(1) of the Australian Consumer Law provides: “A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive. ” The grounds of fraudulent misrepresentation were established in the case of Derry v Peek (1889) 14 App Cas 337 . Lord Herschell stated that fraudulent misrepresentation arises when a

More about The Obligatory Elements For Establishing Fraudulent Misrepresentation

Open Document