The issue for consideration was whether a representation which is made to a contracting party can be relied upon later by a third party or whether it cannot because it has been spent already.<\/p>\n
The defendant had contracted with the claimant’s agent to supply crude oil and the arrangements were such that the agent contracted as principal. The claimant brought claims in deceit and conspiracy because the oil did not meet the contractual specification.<\/p>\n
On the evidence, the judge held that there was a valid deceit claim. What is interesting about this case is the court’s consideration of the defendant’s submission that the case of Gross v Hillman<\/em> had established that, where a representation is made to a contracting party that relies upon it to enter into the contract, that representation cannot then be relied upon by a third party because it is spent.<\/p>\n The judge held that the facts of this case were different from Gross<\/em>; while the agent had contracted as principal, the defendant was aware that it was in fact the claimant’s agent and that any representations made to the agent would be passed on to and relied on by the claimant. Consequently, the claimant could rely on the representations which were made to its agent.<\/p>\n This case illustrates the fact that there is no general principle that a representation made to a contracting party that relies upon it at the time of contracting cannot then be relied upon by a third party, because it has been spent.<\/p>\n","protected":false},"excerpt":{"rendered":" The issue for consideration was whether a representation which is made to a contracting party can be relied upon later by a third party or whether it cannot because it has been spent already. The defendant had contracted with the claimant’s agent to supply crude oil and the arrangements were […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1492],"tags":[1640,1655,1721,846,1815],"class_list":["post-860","post","type-post","status-publish","format-standard","hentry","category-corporate","tag-crude-oil","tag-deceit-claim","tag-gross-v-hillman","tag-high-court","tag-misrepresentation"],"yoast_head":"\n