Contract Law – Term Paper Example

Even though the English traditional law does not recognise any doctrine of pre-contractual good faith, the English judiciary over the recent times has indicated some signs its preparedness to handle such doctrines particularly following the legislations by EU (Busch, pp2-3).
This case may constitutes misrepresentation of facts. It has an element of inducement that is only actionable if it must have influenced a party into entering the contract. James could have not entered into the contract had Richard not tell him about the model and fuel consumption rate. Richard gave certain facts to James while these facts were not part of the advert. This action constitute fraud, hence the misrepresentation may be fraudulent. If they were factual, he could have disclosed them openly in the advert (Poole, pp12-23).
The remedies for fraudulent misrepresentation is rescission or affirmation of contract and damages. Thus, James can rescind the contract as this will place both of them in their pre contractual position. In order to do this, he must notice Richard of his decision to rescind. Because of fraud, the reasonable lapse of time that normally bars rescission is not applicable as was in the case of as in the Car and Universal Finance Co. Ltd. v. Caldwell (1965 (Whincup, pp11-24)). Alternatively, James can seek for damages as available in the tort of deceit. This will allow James to recover all loss, the consequential loss from the breach inclusive. This remedy will also serve to put both of them in their original position as in the Doyle v. Olby (Ironmongers) Ltd (Gillies, pp12-27).
Work Cited
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Bar, Christian , and Ulrich Drobnig. The Interaction of Contract Law and Tort and Property Law in Europe: A Comparative Study. München: Sellier European Law Publ, 2004. Print.
Busch, Danny. Indirect Representation in European Contract Law: An Evaluation of Articles 3:301-304 of the Principles of European Contract Law Concerning Some Contractual Aspects of Indirect Representation against the Background of Dutch, German and English Law. The Hague: Kluwer Law International, 2005. Print.
Chen-Wishart, Mindy. Contract Law. Oxford: Oxford University Press, 2012. Print.
Continental Comparisons. Alphen aan den Rijn: Kluwer Law International, 2006. Print.
DiMatteo, Larry A. Commercial Contract Law: Transatlantic Perspectives. , 2013. Print.
Dobson, A P, and Jo Reddy. Commercial Law. London: Cavendish, 2003. Internet resource.
Gillies, Peter. Concise Contract Law. Sydney: Federation Press, 1988. Print.
Insurance Contract Law: The Business Insureds Duty of Disclosure and the Law of Warranties : a Joint Consultation Paper. London: The Stationery Office, 2012. Print.
Poole, Jill. Casebook on Contract Law. Oxford: Oxford University Press, 2012. Print.
Suff, Marnah. Essential Contract Law. London: Cavendish, 2000. Internet resource.
Whincup, Michael H. Contract Law and Practice: The English System with Scottish, Commonwealth, and