Mistake and Misrepresentation Advice Online

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Mistake and Misrepresentation Explained

As a general rule, a person is bound by his or her signature to a document, whether or not they have read or understood that document. However, where a person has been induced to sign a contractual document by fraud or misrepresentation, the transaction will be voidable. Similarly, if the courts recognise a genuine mistake attributable to a party to an agreement in entering into that contract, the transaction, again , may be voidable.

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Sample Questions

  • “… last year my husband and I placed a 10% deposit on a new build apartment… the build time was to be approximately 18 months… one of the reasons we chose this apartment was because the agents for the property told us the apartment was not subject to stamp tax duty… the literature, which we still have, described the property as “stamp duty exempt”…the property is now complete…we were therefore shocked to discover when completing the purchase that we owe a substantial amount in stamp tax duty…

    We have refused to complete on the purchase because of this but have now been informed that we risk losing our deposit…”

     

  • “… I have a mail order business selling rare stamps and postal orders…my custom is to invite written bids from my clientele…I recently received a written bid for two thousand pounds for an item from a valued client…I refused  the offer but wrote back stating I would accept a price of two thousand, one hundred and fifty pounds … the client immediately accepted… again as is my custom with valued clients I immediately dispatched the item by registered courier to the purchaser and awaited his cheque by return of post…I was surprise to find his payment when it arrived was for the sum of one thousand, one hundred and fifty pounds… when I telephoned him to point out his mistake he told me that was the price I had wrote to him asking for…he sent me a copy of my response to his initial bid and it did state the price he paid… I had obviously made a mistake when writing to him but now he refuses to pay the balance or return the item…”

     

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