''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 countr ...

on the subject of

misrepresentation In common law jurisdictions, a misrepresentation is a false or misleading '' R v Kylsant'' 931/ref> statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The ...

by action. It was held that positive actions - in this case, the concealment of

dry rot Dry rot is wood decay caused by one of several species of fungi that digest parts of the wood which give the wood strength and stiffness. It was previously used to describe any decay of cured wood in ships and buildings by a fungus which res ...

- 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

. 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 A court of appeals, also called a court of appeal, appellate court, appeal court, court of second instance or second instance court, is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal. In much o ...

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:

References

{{reflist English misrepresentation case law Court of Appeal (England and Wales) cases 1986 in case law 1986 in British law

Facts

Judgment

See also

References