1. Contract
Term Representation
Misrepresentation
Condition Warranty
S19 CA 1950.
Terminate & Claim damages Elements
Claim Damages only
Claim Damages +
Terminate.
Exceptions.

2. Must be false
Must be one of the
fact. (Not opinion)
Statement was
Elements of addressed to the
Misrepresentation party which acted
upon it
Representation must
induce the contract.
(S19)
Duty to misled party
to exercise ordinary
diligence (berhati2)

3. Right to the affirm the contract
and put in the position in which
S19 (2) CA 1950 he would have been if the
representations made had been
true.
If rescind the contract, it is
Remedies of Misrepresentation.
mandatory for the representee to
S65 CA 1950
restore any benefits that he may
received to the representor.
Representor must restore
S66 CA 1950 benefits received and pay
compensation.
S77 CA 1950 Appropriate Compensation
S34 (1)(a) CA1950 Right to rescind.

4. Innominate terms.
Loss severe Claim Damages +
Condition
(Serious) Terminate
Loss not severe. Warranty Claim Damages only.

5. Hong Kong Fir Shipping Co Ltd vs. Kawasaki Kisen
Kaisha Ltd.
“There are many…contractual
undertakings…which cannot be categorized as being
‘conditions’ or ‘warranties’…” – IMPORTANT!
The HANSA NORD
Buyers if citrus pulp purported to reject the cargo on the ground that
shipment was not made in good condition. The price of the cargo was
£100,000. the sellers were compelled to sell the cargo and the
buyers, acting through an agent, managed to repurchase it for £30,000 and
they were able to use the citrus pulp for its original intended purpose. The
Court of Appeal held that the term which concluded that the term was an
innominate one and that the consequences of the breach were not
sufficiently serious to give rise to a right to terminate. The buyers
were, therefore, confined to a claim in damages to reflect the loss in value
of the cargo caused by its defective state.

6. Privity of
Contract.
Definition: Who
are parties to the
contract may sue Exceptions:
or be sued on the
contract.
Case: Kepong
Prospecting v. 8
Schmidt. Exceptions.
(Consideration)

7. Specific Performance
Case: Beswick.
in favor of 3rd party.
Constructive trust of
Case: RE Flavell
contractual rights.
8 Exceptions. Commercial Practice Case: Said v. Butt
S323 of National Land
Land Matters
Code.
Negotiable S38 of Bills of
instruments. Exchange Act 1949
Assignment
Guarantor’s right of
subrogation
Insurance.