ABSTRACT

This chapter and the next three deal with problems which may arise out of behaviour which takes place prior to a contract being formed. A party to a contract may, after a valid agreement has apparently been concluded, nevertheless decide that it has turned out not to be quite what was anticipated, or that the behaviour of the other party means that it should not be enforced. This may be the result of false information, a mistake as to some aspect of what was agreed, the imposition of threats, or the application of improper pressure. These situations are dealt with by the English law of contract by rules which are traditionally grouped under the headings ‘misrepresentation’, ‘mistake’, ‘duress’ and ‘undue influence’. In such a situation, the party who is unhappy with the agreement may wish to escape from it altogether, or to seek compensation of some kind. This chapter discusses the rules relating to ‘misrepresentation’ which allow for such an eventuality. The other areas are covered in the subsequent chapters.