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contract 2: induced party to into enter into contract URGENT

where a party is induced into entering to a contract by misrepresentation, how do we give them their money back if the buyer paid the actual price of the product?

like price paid - real value of product = damages.

what would be the real value if you paid the normal amount of money? but the latop is not the one that is suitable for your needs?

Reply 1

Forum User

Original post by Ketchuplover

The standard remedy for misrepresentation is not damages.

Reply 2

Ketchuplover

Original post by Forum User

The standard remedy for misrepresentation is not damages.

oh right, so what is it?

is 'restutitio in integrum' applicable? if it is applicable then does that mean there was misrepresentation but no damages paid to the person. e.g. the laptop is not for gaming but it was told it is suitable for gaming, she realised this and wants to bring it back but now she has an affixed printed logo on a part of it and a lot of new programmes have been downloaded into it

Thanks for the reply by the way!

Reply 3

Forum User

Original post by Ketchuplover

The standard remedy is rescission, and if the claimant has suffered no loss as such, that is what they will be after.

That stuff in the question about logos and downloaded programmes is relevant to two possible bars to rescission. Firstly, if the claimant did that stuff after realising that the computer did not match the specification, then he may have affirmed the contract. Secondly, if the programmes cannot be erased (highly unlikely?) and the logo cannot be removed (perhaps more likely), the restitution in integrum bar may be engaged. The claimant has had some use of the computer, which obviously cannot be 'given back', but it can be valued and that value returned.

You can look up the relevant cases on affirmation and restitutio in integrum. Most likely, the courts are going to take a common sense view and just value everything they can and award rescission consequent on the payment of some money by the claimant - Erlanger v New Sombrero Phosphate, Halpern v Halpern, etc.

Taking a realistic view, if the computer is a desktop and not a laptop, it would be easy for the seller to make it comply with the description. He could swap the non-conforming graphics card for a gaming one, etc etc. If the specification was a term of the contract, and the buyer was a consumer, the buyer would have the right to make the seller conduct 'repairs' like that under s 48 SOGA. Even if not I suspect the seller would do just that rather than quibble :smile:

Reply 4

Ketchuplover

Thank you so muchhhh!!

And, if the logo is also removable, would rescission be a remedy?
and the last part of your answer, is the case of 'Erlanger -v- New Sombrero Phosphate Company' applicable?

Reply 5

Ketchuplover

Original post by Ketchuplover

Thank you so muchhhh!!

And, if the logo is also removable, would rescission be a remedy?

Reply 6

Forum User

[QUOTE="Ketchuplover;56190227"]

Original post by Ketchuplover

Thank you so muchhhh!!

And, if the logo is also removable, would rescission be a remedy?

I would have thought so.

Reply 7

Ketchuplover

Thank you again!!

Original post by Forum User

If the specification was a term of the contract, and the buyer was a consumer, the buyer would have the right to make the seller conduct 'repairs' like that under s 48 SOGA.

Does this section apply if the representation is not a term but an advice from the seller which induced the buyer into buying the item? (misrepresentation)

Reply 8

Forum User

Original post by Ketchuplover

Thank you again!!

Does this section apply if the representation is not a term but an advice from the seller which induced the buyer into buying the item? (misrepresentation)

It only applies if the 'the goods do not conform to the contract of sale at the time of delivery', if the description is not a term of the contract of sale then no.