Misrepresentation Q&A

These are the Misrepresentation Questions and Answers Q&As. You will find a lot of examples available for the kinds of questions you could get on your coursework or examination. The answers are given discuss a problem question that looks at Misrepresentation. There is a mix of essay questions and problem questions with answers to guide you. These notes will demonstrate to students how to approach legal essays and how to provide straightforward advice.

Question 1

Jack is considering buying his aunt Jess’s house as an investment. During the negotiations, Jess states, “This house is worth £200,000 and I’ve had two separate valuations from estate agents verifying that, but since I love you so much, I’ll sell it to you for £180,000.” Jess has not received any valuations from estate agents and the house is worth only £120,000. Jack buys the house for £180,000. Two weeks after Jack has completed the sale and moved into the house, he discovers that Jess did not receive any valuations from estate agents. The same week, Jack discovers that the value of the house has been reduced to £80,000 due to serious damage caused by the collapse of a supporting wall. At this point, a buyer offers £80,000 for the house. Jack does not sell the house until three months later, when Jack only receives £75,000 for the house because of a general fall of the property market.

Advise Jack.

Question 2

Holger, a fishmonger by trade, is also the owner of a brown-field plot of land in the centre of Manchester.  Holger bought the plot from an inner-city farm, which unfortunately had to close down due to cut backs by the local council.  Holger has never done anything with the plot but has held onto it as an investment.  He decides that now is the time to sell, and he enters negotiations with SkyReach Ltd., a property developer.  Building permission has never been applied for, but Holger is aware from the local news that many building schemes have recently been given the go ahead by the local planning department.  In one meeting, Jaki, the manager of SkyReach, asks Holger if he (Holger) considers that planning permission will be granted for the plot.  Holger replies, “of course, it should be no problem.  As I understand it, inner city development is a top priority here.”  A week later, Holger and SkyReach enter into a contract for the sale of the plot.  Consequently, SkyReach apply for planning permission to build a block of offices on the site.  This is rejected, and SkyReach are informed by the local planning department that the use of the plot is restricted to ‘educational purposes’ only.

Advise SkyReach.