Bisset v Wilkinson
Encyclopedia
Bisset v Wilkinson [1927] AC 177 is a leading English contract law
case on the subject of misrepresentation
, establishing that a fairly given opinion cannot amount to a misrepresentation. Such a rule is limited to reasonable opinions; those which are not honestly held, or are unreasonable in their entirety, may constitute a misrepresentation.
, New Zealand. The two blocks comprised 2062 and 348 acres (1.4 km²) respectively, the two parties reaching agreement, for 13,260l. During negotiations Mr Wilkinson stated that he believed the land would hold 2000 sheep, if cultivated and used correctly. Subsequently, it was discovered the land did not hold 2000 sheep, and the claimant brought an action for misrepresentation.
advised that the statements made by Mr Wilkinson were not intended to be a serious representation, qualified by any knowledge. It was known to both the parties at the time of contracting that the defendant had not used the land for sheep farming, and thus any statement as to the capacity would surely be an estimate. Lord Merrivale stated that important considerations were the ‘material facts of the transaction, the knowledge of the parties respectively, and their relative positions, the words of representation used, and the actual condition of the subject-matter spoken of…’ Then he said,
In addition, it was noted that the ‘defendants failed to prove that the farm if properly managed was not capable of being occupied by two thousand sheep.’
Viscount Dunedin, Lord Atkinson, Lord Phillimore and Lord Carson agreed.
. Equally, if the opinion is one which - in all the circumstances - is unreasonable, then it may be seen as an active misrepresentation, as in Smith v Land & House Property Corp.
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
case on the subject of misrepresentation
Misrepresentation
Misrepresentation is a contract law concept. It means a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality...
, establishing that a fairly given opinion cannot amount to a misrepresentation. Such a rule is limited to reasonable opinions; those which are not honestly held, or are unreasonable in their entirety, may constitute a misrepresentation.
Facts
Mr Wilkinson and Mr Bisset entered into a contract in May, 1919, whereby Mr Bisset would purchase two adjoining blocks of land called Homestead and Hogan’s, in AvondaleAvondale, Canterbury
Avondale is a suburb of Christchurch in the South Island of New Zealand. It is located northeast of the city centre, and is close to the Avon River, four kilometres to the northwest of its estuary...
, New Zealand. The two blocks comprised 2062 and 348 acres (1.4 km²) respectively, the two parties reaching agreement, for 13,260l. During negotiations Mr Wilkinson stated that he believed the land would hold 2000 sheep, if cultivated and used correctly. Subsequently, it was discovered the land did not hold 2000 sheep, and the claimant brought an action for misrepresentation.
Advice
The Privy CouncilPrivy council
A privy council is a body that advises the head of state of a nation, typically, but not always, in the context of a monarchic government. The word "privy" means "private" or "secret"; thus, a privy council was originally a committee of the monarch's closest advisors to give confidential advice on...
advised that the statements made by Mr Wilkinson were not intended to be a serious representation, qualified by any knowledge. It was known to both the parties at the time of contracting that the defendant had not used the land for sheep farming, and thus any statement as to the capacity would surely be an estimate. Lord Merrivale stated that important considerations were the ‘material facts of the transaction, the knowledge of the parties respectively, and their relative positions, the words of representation used, and the actual condition of the subject-matter spoken of…’ Then he said,
In addition, it was noted that the ‘defendants failed to prove that the farm if properly managed was not capable of being occupied by two thousand sheep.’
Viscount Dunedin, Lord Atkinson, Lord Phillimore and Lord Carson agreed.
Significance
This result can be contrasted with other situations where one party has specialist knowledge of the subject, as in Esso Petroleum Co Ltd v MardonEsso Petroleum Co Ltd v Mardon
Esso Petroleum Co Ltd v Mardon [1976] is an English contract law case, concerning misrepresentation. It holds that the divide between a statement of opinion and fact becomes more factual if one holds himself out as having expert knowledge.-Facts:...
. Equally, if the opinion is one which - in all the circumstances - is unreasonable, then it may be seen as an active misrepresentation, as in Smith v Land & House Property Corp.
See also
- Smith v Land & House Property Corp
- Esso Petroleum Co Ltd v MardonEsso Petroleum Co Ltd v MardonEsso Petroleum Co Ltd v Mardon [1976] is an English contract law case, concerning misrepresentation. It holds that the divide between a statement of opinion and fact becomes more factual if one holds himself out as having expert knowledge.-Facts:...
- Misrepresentation in English lawMisrepresentation in English lawMisrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...
- English contract lawEnglish contract lawEnglish contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...