''Gordon v Selico'' (1986) 18 H.L.R. 219 is an
English contract law
English contract law is the body of law that regulates legally binding agreements 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 ...
on the subject of
misrepresentation
In common law jurisdictions, a misrepresentation is a False statements of fact, false or misleading''Royal Mail Case, R v Kylsant'' 931Question of law, statement of fact made during negotiations by one party to another, the statement then in ...
by action. It was held that positive actions - in this case, the concealment of
dry rot - could amount to operative misrepresentations.
[(1986) 18 H.L.R. 219, page 238]
Facts
Mr Gordon and Mrs Teixeira, contracted in November 1978 to purchase a 99-year lease of a flat owned by the defendant, Selico Ltd. The flat was in poor condition, as was the block that contained it, with some evidence of
dry rot. Prior to the first inspection by the plaintiffs in about November 1978, the second defendants had instructed some painters to conceal patches of dry rot from view, by painting them. The plaintiffs obtained a detailed survey of the flat in February 1979, which concluded that no dry rot had been found (although only one floorboard had been lifted, and it could not be guaranteed that it did not exist elsewhere in the flat). The plaintiffs moved into their flat on 1 January 1980 and subsequently discovered extensive dry rot in the front bedroom, bathroom and lavatory.
[(1986) 18 H.L.R. 219, page 229]
Judgment
Ordinarily, a misrepresentation is made by a statement of supposed fact, or otherwise a statement of intent. It was held by the
Court of Appeal
An appellate court, commonly called a court of appeal(s), appeal court, court of second instance or second instance court, is any court of law that is empowered to Hearing (law), hear a Legal case, case upon appeal from a trial court or other ...
that the painting of dry rot to conceal it amounted to a misrepresentation. The court distinguished the set of facts from other cases, where it was held that reliance on an independent surveyor's findings defeated a claim of misrepresentation:
See also
*
English contract law
English contract law is the body of law that regulates legally binding agreements 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 ...
*
Misrepresentation in English law
References
{{reflist
English misrepresentation case law
Court of Appeal (England and Wales) cases
1986 in United Kingdom case law