Chapter Updates

7.2 MISTAKE – p 153

Whether a mistake was operative, thus rendering a contract void, was in question in Brennan v Bolt Burden [2004] EWCA Civ 1017, [2004] 3 WLR 1321. In this case, the Court of Appeal considered important previous authorities such as Bell v Lever Bros (1932) and Great Peace Shipping Ltd v Tsavliros Salvage Ltd (2001).

See also: Champion Investments Ltd v Ahmed [2004] EWHC 1956 and EIC Services Ltd v Phipps [2004] EWCA Civ 1069, [2005] 1 WLR 1377

7.3 MISREPRESENTATION

7.3.1 There must be a false statement of fact – p159

Currently, there is no general duty to disclose information except in insurance contracts. Following consideration by the Law Commission, consultation is taking place on, inter alia, the proposal that, as regards consumers, insurers should ask specific questions in proposal forms. This would largely abolish the general duty of disclosure in consumer insurance contracts and place the obligation on the insurer to elicit information by posing specific questions.

7.3.4 Remedies for Misrepresentation – pp 162 – 163

The remedy of damages in lieu of rescission, under s.2(2) of the Misrepresentation Act 1967, was considered in UCB Corporate Services Ltd v Thomason [2005] EWCA Civ 225, [2005] 1 All ER (Comm) 601, where the Court of Appeal exercised its discretion to award damages under s. 2(2) rather than allow rescission.

7.4 Duress – p 165

Duress renders a contract voidable, at the option of the innocent party. This option to rescind the contract for duress, was held to be subject to the principle of restitutio in integrum in Halpern and another v Halpern and others others [2006] EWHC 1642 (Comm), [2006] All ER (D) 20 Jul. The decision is of interest because, as the judge said, there was no previous decision where the remedy of rescission for duress was subject to the restitutio in integrum principle.