''Edgington v Fitzmaurice'' (1885) 29 Ch D 459 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''

931 Year 931 ( CMXXXI) was a common year starting on Saturday of the Julian calendar. Events By place North Africa * The Ummayad Caliphate of Córdoba invades and conquers the city of Ceuta, which was ruled by the Berber dynasty Banu I ...

Question of law, statement of fact made during negotiations by one party to another, the statement then in ...

. It holds that a statement of present intentions can count as an actionable misrepresentation and that a misrepresentation need not be the sole cause of entering a contract so long as it is an influence.

Facts

Company directors sent shareholders a prospectus inviting subscriptions for debenture bonds. It said money would go to alter their buildings, buy horses, vans and expand into supplying fish. Really though, the purpose was to pay off liabilities, because the company was in trouble. Mistakenly believing he would get a first charge on company property, Mr Edgington bought bonds. If he was aware that he wouldn't get a charge, he wouldn't have done so. Mr Edgington sought to recover money for deceit.

Judgment

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 ...

upheld Denman J at first instance, saying that the directors were liable for deceit. Cotton LJ held that the statement of purpose was a

fraudulent misrepresentation The tort of deceit is a type of legal injury that occurs when a person intentionally and knowingly deceives another person into an action that damages them. Specifically, deceit requires that the tortfeasor * makes a factual representation, * kn ...

and Mr Edgington had relied on that despite his admission of mistake over charges. He said,(1885) 29 Ch D 459, 481 To fulfil the requirement that Mr Edgington relied on the statement, it is not necessary to show the misstatement was the sole cause of acting, so long as there was an influence.

Bowen LJ Charles Synge Christopher Bowen, Baron Bowen, (1 January 1835 – 10 April 1894) was an English judge. Early life Bowen was born at Woolaston in Gloucestershire – his father, the Rev. Christopher Bowen, originally of Hollymount, County M ...

said ‘the state of a man’s mind is as much a fact as the state of his digestion... A misrepresentation as to the state of a man’s mind is, therefore, a misstatement of fact... such misstatement was material if it was actively present to his mind when he decided to advance his money.’ Fry LJ said the ‘inquiry is whether this statement materially affected the conduct of the Plaintiff in advancing his money.’ He pointed out the ‘prospectus was intended to influence the mind of the reader.’

Notes

{{reflist, 2 United Kingdom company case law English misrepresentation case law Court of Appeal (England and Wales) cases 1885 in case law 1885 in British law

Facts

Judgment

See also

Notes