WJEC/Eduqas Law for A level Book 2 Revision Guide

Chapter 1 The law of contract Activity 1.8 Mead v Babington (2007) Read the following case study and answer the questions that follow. A couple wanted to build a property in Spain and made enquiries to a British estate agent. The estate agent introduced them to a Spanish developer with whom they arranged to have a property built. However, the property was not built and they lost a lot of money. During negotiations, the estate agent had made several statements, including claims that the developer was: • suitable to buy the land • suitable to build the property • the estate agent’s Spanish agent. None of these were terms of the contract with the developer so there was no action for breach of contract. The case was brought on the basis of misrepresentation. The next question was therefore whether the statements above were misrepresentations. • The first statement was true. • The second statement was not true, but the British estate agent had been to Spain to see the developer at work and did not have any reason to suspect his honesty. • The third statement was untrue. 1. What are the rules for a statement to be a misrepresentation? 2. Was the first statement a misrepresentation? 3. Was the second statement a misrepresentation? 4. Was the third statement a misrepresentation? 5. What type(s) of misrepresentation were any of these statements? 22