Disclaimer: This work was produced by one of our professional writers as a learning aid to help you with your studies.
Any opinions, findings, conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of Parallelewelten.net.
If you would like to view samples of the work produced by our academic writers please click here.
Clarke v Dickson (1858) 120 E.R. 463
Contract law – Misrepresentation – Rescission of contract
The plaintiff claimed that he had been induced to invest in shares in a lead and copper mining company by the three defendants, who were directors of the company. The mine was operated by the mining company for three years, with dividends claimed each year. The following year, the company was in poor circumstances and it was registered as a limited liability company and was wound up. During this process, the plaintiff realised that the representations that were made by the defendants were fraudulent and the dividends that had been paid previously were false. He brought an action to have the deposits for his shares repaid.
A prominent issue for the judges to consider was that the shares that had been previously purchased by the plaintiff were now worthless as the lead and copper mining company had been closed down. Therefore, it would be unlikely that the plaintiff could recover the value of the shares that he invested as a result of the defendant’s misrepresentation.
The judges held that the contract between the parties could not be rescinded as the shares were worthless, following the wrapping up of the company. In circumstances where a party wished to rescind an offer, they must be able to return to their original state that they had before the contract was agreed. The court subsequently found that the plaintiff was required to seek remedy by special action for deceit in which he could potentially recover damages for the misrepresentation, rather than trying to recover the original price of the shares.
Related ServicesView all
DMCA / Removal Request
If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please.