Essay
P3 describe the law with respect to misrepresentation in a given situation
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Unit 21 BTEC Business Level 3 Extended Diploma
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Describe the law withrespect to
misrepresentation in
a given situation
There is a part in English contract law when a
person can escape the
contractual obligation if they can show evidence of
Misrepresentation, Mistake, Duress and Undue
influence.
Misrepresentation:
It is a false statement of fact, which makes the
party to enter a contract. There are 3 types of
misrepresentation:
• Fraudulent misrepresentation - It’s false
statement that is known as false. This could be linked to
Spice Girl’s case.
For instance Vodafone could have this type of misrepresentation by selling a product such
as iPhone x to a customer stating that the in the pack of £ 65.00 will be included unlimited
texts, 4gb data and 600 minutes, so that the assistant says that
in order to make the client to buy the product.
However, after signing a contract the second day
the client observes that he has 200 minutes, 200
texts and no data. In fact he received totally
different pack than it was advertised to him. In
fact this procedure make Vodafone liable for
fraud.
• Negligent misrepresentation - A careless
false statement where there is believe the
statement for being true. This could be linked
to Hedley Byrne v Heller 1963 case.
For instance Vodafone could come across with
negligent misrepresentation in a contract when a customer service assistance states to the
client that he will deliver the iPhone x in the 5 business working days without any reason of it
being true. If the other party receives the phone later then both parties can be put into a
position as if the misrepresentation never happened.
• Innocent misrepresentation - A false statement made by someone who has
reasonable grounds to believe it was true.
For instance a Vodafone assistant states to customers that the iPhone x is unlocked for all
services in order to sell the iPhone faster and more products all around the world however
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