Company Law Essay

2117 words - 9 pages

Brian vs Nick: The Misrepresentation in the Law of Contract
    Misrepresentation of facts, that is statement of untrue or misleading information so as to induce parties into a contract, is acknowledged as one of the vitiating factors in contractual relationships. There are three possible forms of representation under English law of contract, namely: fraudulent misrepresentation, negligent misrepresentation and innocent misrepresentation. The locus classicus for fraudulent misrepresentation is to be found in the case of Derry v Peek[ (1889) 14 App. Cas. 337.], where the house of Lords asserted that a representation is fraudulent where : (i) a representation is made knowingly that it is untrue , or (ii) the representation is made reckless without caring as to whether it is true or false. Doyle v Olby[ [1969] 2 QB 158It] clarified further that fraudulent misrepresentation is characterised by a wilful intention to deceive. It was latter to be held in Hedley Byrne v Heller[ [1964] A.C. 465] that the second alternative to definition of fraudulent misrepresentation presented in Derry v Peek,[ (1889) 14 App. Cas. 337.] is a negligent misrepresentation, rather than fraudulent one. Thus, intention to deceive is not an element of negligent representation. Innocents misrepresentation arises where a party misrepresents statements, but with reasonable ground to be believe in its truth.[ Hedley Byrne v Heller [1964] A.C. 465]
    It is contended in wide range of cases that damages arising from misrepresentation are to be calculated as per the equivalent tortuous liabilities, because representations are not themselves terms of contract, and thus have no basis to attract contractual damages.[ Doyle v Olby [1969] 2 QB 158; Hedley Byrne v Heller [1964] A.C. 465; Esso Petroleum Co Ltd v Mardon [1976] Q.B. 801] Thus, precedents indicate that damages for fraudulent misrepresentation are to be liquidated as with the tort of deceit[ Doyle v Olby ], while those of negligent misrepresentation are to be assessed as torts of negligent misstatement.[ Hedley Byrne v Heller] The position in respect to negligent misrepresentation is now altered pursuant to the Misrepresentation Act 1967, which now allows damages for negligent misrepresentation to be assessed as equivalents of fraud, and so a party may either prove fraud or negligence (breach of duty of care that occasions damage), and the damages will be equal. This makes damages for negligent misrepresentation more lucrative, as damages for fraud in tort is typically higher than those of negligence. Further, under the Act, the representor has the burden to prove that the statement did not amount to a negligent representation. Section 2(2) Misrepresentation Act 1967 allows the court to award damages in lieu of recession, where it is equitable to take such action.
    For Brian to have a course of action under the Misrepresentation Act 1967, he will only need to prove that there was a misrepresentation in respect...

Find Another Essay On company law

law assignment

980 words - 4 pages artificial person created by law to achieve the objectives for which it is formed. A company exists only in the contemplation of law. It is artificial person in the sense that it is created by a process other than natural birth and does not possess the physical attributes of a natural person.It is invisible, intangible, immortal and exists only in the eyes of law. It has no body, no soul and no conscience; it is regarded as an artificial person.4

Virtual Organization E-Business Paper: Smith Systems Consulting

1355 words - 5 pages law that pertain to those issues. What law would apply tothese situations? What court will decide these issues? (Augenstein)Virtual Organization E-Business PaperSmith Systems Consulting describes the web as "the marketplace of the new millennium" (University of Phoenix). The company, founded in 1994, focuses on delivering "high value Web and business application services" in this marketplace. Most of the current customers of Smith Systems are

“Corporate criminal liability for manslaughter has finally been given statutory form and rightly so.” Discuss.

4525 words - 18 pages any crime. In an attempt to circumvent the difficulties of imposing corporate criminal liability, the court developed private law concepts in the form of the: vicarious liability principle, the identification doctrine and the aggregation theory.Vicarious LiabilityUnder the vicarious liability doctrine, a company can be held "vicariously liable for the criminal acts of its employees and agents where a natural person would be similarly liable

The Ups and Downs of the east India Comany

650 words - 3 pages compete with the Dutch in the Indonesian Spice trade, however this idea was soon dropped after the Dutch barbarously massacred English traders at Amboina in 1623. The idea of the Indonesian Spice Trade was given up, and the English concentrated on the Indian Subcontinent, where it had already established a base in Surat during 1612.After the East India company established a post at the city of Madras in 1640, the Company was allowed by law to coin

Pre registration contracts

1529 words - 6 pages The common law view of pre-registration contracts was that the company did not exist for legal purposes until it had been formally incorporated (registered). This common law view resulted in company’s being unable to enter a binding contract until they had been registered.      However “given the delays which can be encountered in the registration process, the promoter of a company may wish to enter into contracts `for

Incorporating a Business

1576 words - 6 pages Court of Justice intervenes.B I B L I O G R A P H YAdams, A (2000) Law for Business Students. 2nd Edition. Longman, Pearson Education.Keenan, D (1997) Advanced Business Law. 10th Edition. London, Pitman.Class notes as prepared by P P E N D I C I E SAppendix 1Salomon v Salomon & Co. Ltd (1897)Mr Salomon had a boot factory. He set up a company and

Law School

1550 words - 6 pages Law School Perhaps one of the most difficult aspects of the practice of law is learning to be a lawyer. Virtually every new lawyer today is a graduate of law school, a much dreaded, but fulfilling journey to practicing law. Modern law schools differ greatly from their earlier counterpart, in that many more requirements and responsibilities exist. In colonial times, students pursuing a career in law would enter institutions for

Virtual Organization E-Business Paper

736 words - 3 pages trademark on an international basis may be limited due to weak trademark dilution laws in other countries. Riordan Manufacturing could sue in U.S. courts under the Federal Trademark Dilution Law, but it might be difficult to collect damages in cases involving foreign nationals. In some cases the company would also have the option to go through the World Intellectual Property Organization.E-commerce SecurityAnother issue that Riordan Manufacturing

lex mercatoria

718 words - 3 pages not under Turkish Law. But the arbitrators decided the case neither on the basis of French or Turkish law but on Lex Mercatoria reasoning that the contract was international. In another case where the claimant was a French company which held exclusive license to manufacture, sell and distribute the respondent’s products in Europe, challenged a subsequent licensing agreement that the respondent Japanese Company entered in to with a third company

Special Purpose Vehicles In Modern Accounting

1186 words - 5 pages insolvency, of the subsidiary.Under-resourced subsidiariesA parent or holding company may find itself liable if it has allowed its subsidiary SPV to be under resourced when viewed against its contracted debts and liabilities.These subsidiaries may be regarded by law as a mere agent of the parent, as its parent, or as its partner in the venture. There are, however, various obviating factors. These include a separate and independent board

Business Ethics: Gumdrop Northern

1562 words - 6 pages released for use in the field. Although the production of the landmines was illegal, the company should have ensured that despite the business type, the products supplied were in perfect condition. This demonstrates that the company had no respect for human life, because the wars and the deaths were frequently reported but no changes were effected. Through following law and order, the company should have prevented the thousands of deaths in

Similar Essays

Company Law Essay

2186 words - 9 pages As a consequence of the separate legal entity and limited liability doctrines within the UK’s unitary based system, company law had to develop responses to the ‘agency costs’ that arose. The central response is directors’ duties; these are owed by the directors to the company and operate as a counterbalance to the vast scope of powers given to the board. The benefit of the unitary board system is reflected in the efficiency gains it brings

Pittston Coal Company: Tort Law Essay

1230 words - 5 pages properly enforce this law gave Pittston the ability to claim the disaster was an act of God; this was supported by President Nixon who referred to this as a natural disaster (187). In his testimony Mr. Spotte, head of the Pittston Coal Group, stated the accident was a natural occurrence beyond the company’s control. However he admitted that this particular dam (3) was not built in the custom of the company other dams lacking a spillway system. This

The Extent To Which The Rise To Dominance Of Company Law In The Nineteenth And Early Twentieth Centuries Was The Inevitable Consequence Of Technologi

3414 words - 14 pages The Extent to which the Rise to Dominance of Company Law in the Nineteenth and Early Twentieth Centuries was the Inevitable Consequence of Technological Advance During this period of history, Britain experienced what came to be known as the ‘second industrial revolution’ – a period of major industrialization with changes to British industry as a whole, and further to this, a change in the idea of the ‘company’ or firm. Hand

Holding Company Essay

584 words - 2 pages HOLDING AND SUBSIDIARY COMPANYCompanies like person, may be related to each other. If there is a holding-subsidiary relationship, the companies are related under Section 6 Companies Act 1965 .Holding company is usually call parent company. Meanwhile, subsidiary company will be controlled and managed by holding company. In the real world, different country has different corporate law to define the term of becoming parent company. Section 5(1