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Misrepresentation in Contract Law

if an IT student convinces a company to buy his app and claims that it is the best app and that it will ensure the activities of that company run effectively. He further affirms that they do not need to check if it is. Thus, they enter into a contract. Then after the company realizes the app is not the best app for them and it does not make them run effectively.The questions 1. has the student committed innocent, fraudulent or negligent misrepresentation....?2. what are the legal remedies for the answer in question 1...
I'm not going to answer this problem question for you. Instead, consider the following:

Is the statement enough to create and express or implied term? (Assuming that apps constitute 'goods', "fitness for purpose" sounds relevant.)

Has there been a representation of fact and/or law rather than opinion?

Was it false?

Did it cause the loss? Stage 1: was the representation material? Stage 2: even if not, was the representee relying subjectively on it?

For fraudulent misrep you need fraudulent intention on the part of the representee.

As for remedies, look at the Misrepresentation Act.

Original post by Nyambe E.N
if an IT student convinces a company to buy his app and claims that it is the best app and that it will ensure the activities of that company run effectively. He further affirms that they do not need to check if it is. Thus, they enter into a contract. Then after the company realizes the app is not the best app for them and it does not make them run effectively.The questions 1. has the student committed innocent, fraudulent or negligent misrepresentation....?2. what are the legal remedies for the answer in question 1...
Reply 2
Is the statement enough to create and express or implied term? (Assuming that apps constitute 'goods', "fitness for purpose" sounds relevant.)

The statement was not enough to create an implied term but it served as an inducement for the company to enter into the contract with the student





Has there been a representation of fact and/or law rather than opinion?

Yes, the statement " it is the best app and that it will ensure the activities of that company run effectively" is an assertion or rather a claim not an opinion



Was it false?

Yes, later on the company realized it was false



Did it cause the loss?

No, it did not cause loss any loss to the company except the amount they paid for the app



Stage 1: was the representation material?

Yes, it led to the company buying the app



Stage 2: even if not, was the representee relying subjectively on it?

Yes, the representee was relying on the IT student's assertion, although i think the student has a duty of care thus, he is liable under tort of negligence to pay damage (i stand to be corrected)



For fraudulent misrep you need fraudulent intention on the part of the representee.

on Fraudulent i agree, they was no intention. But now is it negligent since the IT student had no reasonable ground to believe the app was the best app for the company.



As for remedies, look at the Misrepresentation Act.

RESTITUTION right ?
(edited 1 year ago)

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