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Representations

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Representations

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 5, 2023 at 6:20 pm #686089
    MuhammadAhsan1822
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    Hello Mike, I hope you are doing well.

    First of all, I would like to appreciate your lectures, they’ve been a lot of help, thanks a lot!

    Secondly, I wanted to ask about representations under the contract law chapter. I was confused about the bullet points in the notes and do not understand what they are saying. All I understand is that representations are like invitations to treat. But i don’t understand how opinions are linked to it. in the notes it says “nor or opinion” and then it says “unless clearly not a genuine opinion.”

    Kindly explain as I am quite confused, thanks.

    June 6, 2023 at 7:45 am #686153
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    Thank you Muhammad for those kind words 🙂

    A representation is …
    – a pre-contractual statement made
    – by one party to another
    – of some known or discernible fact and
    – made with the intention of inducing the other into a contract

    So, if it’s a statement of opinion, then that clearly rules out the situation where a statement is being discussed as being a representation

    BUT!!! If this statement of opinion is clearly not a genuine opinion, then that would be classed as a misrepresentation.

    The case Bissett v Wilkinson concerning an opinion about the ability of a stretch of land to support 2,000 sheep was an opinion based on the vendor’s knowledge of the land and of farming. As a statement of opinion, and a genuine opinion, it was not taken to be a representation.

    But in the case Smith v Land and House Property Company, the statement of opinion by the vendor that ‘Mr Frederick Fleck, a most desirable tenant’ did not accurately characterise Mr Fleck who really could not be considered to be a desirable tenant

    Thus, although this was a statement of opinion and not, on the face of it, a representation, because it was clearly a statement of false opinion, it could be (and was) seen to be a representation.

    Is that clearer for you?

    June 6, 2023 at 7:13 pm #686240
    MuhammadAhsan1822
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    Yes, it makes much more sense now, thanks a lot again!

    June 7, 2023 at 6:46 am #686314
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    You’re very welcome

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