''Clarke v Dickson'' (1858) EB & E 148 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 ...
case concerning
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 ...
. It stands as an example of the restrictive approach common law courts took to rescission for misrepresentation before the leading case of ''
Erlanger v New Sombrero Phosphate Co
''Erlanger v New Sombrero Phosphate Co'' (1878) 3 App Cas 1218 is a landmark English contract law, restitution and UK company law case. It concerned rescission for misrepresentation and how the impossibility of counter restitution may be a bar t ...
''
[(1878) 3 App Cas 1218] held only substantial counter restitution was needed.
Facts
Mr Clarke said he was induced by the three defendants’ statements to take shares in The Welsh Potosi Lead and Copper Mining Company, formed for working on a mine on the cost-book principle. Dividends were declared in 1854-6. Then Mr Clarke accepted fresh allotments in lieu of dividends. In 1857 the company's performance was poor and it was liquidated under the
Winding-up Act 1855. Then Mr Clarke discovered that the representations about its cost-book practices were false and fraudulent. He sued to recover deposits for the shares.
Judgment
Crompton J held that the contract could not be rescinded, since the shares were now worthless. He said where someone wants to exercise the voidable option,
Erle J and
Lord Campbell CJ concurred.
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
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 ...
*
UK company law
British company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directive (European Union), Directives and court cases, the company is th ...
Notes
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English misrepresentation case law
1858 in case law
1858 in British law
United Kingdom company case law