Cremdean Properties Ltd v Nash
Encyclopedia
Cremdean Properties Ltd v Nash (1977) 244 EG 547 is an English contract law
case, concerning misrepresentation
and exclusion of liability under the Misrepresentation Act 1967
s 3.
property from Nash. They wanted to develop it. They relied on representations by Nash’s agents that there was planning permission for 17900 square feet (1,663 m²) of offices. The true figure was much lower. Cremdean sought rescission or damages for misrepresentation. Nash sought to rely on a footnote clause in the invitation to tender document that said although statements (like the planning permission) ‘are believe to be correct their accuracy is not guaranteed’ errors would not annul the sale and pre-contract statements did not form part of the offer. Also, any purchaser should satisfy himself. Cremdean Properties Ltd argued that the exclusion fell within MA 1967 s 3 and was unreasonable.
situation had no effect here, because here the agents that published the documents always had Nash’s authority.
He added that it would be enough to go by ordinary interpretation principles, that the footnote was an exclusion. But even if an ingenious draftsman had said that ‘no representation is being made by our representations’ or something, s 3 could still not be circumvented.
Scarman LJ concurred. He said that the logic of Nash's argument was appealing that,
Buckley LJ concurred.
English contract law
English contract law is a body of law regulating contracts 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 across the Commonwealth , and the United States...
case, concerning misrepresentation
Misrepresentation in English law
Misrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...
and exclusion of liability under the Misrepresentation Act 1967
Misrepresentation Act 1967
Misrepresentation Act 1967 is an Act of the Parliament of the United Kingdom, which regulates English contract law and unjust enrichment, so far as relevant for misrepresentations.-Section 1:-Section 2:...
s 3.
Facts
Cremdean Properties Ltd contracted to buy some BristolBristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...
property from Nash. They wanted to develop it. They relied on representations by Nash’s agents that there was planning permission for 17900 square feet (1,663 m²) of offices. The true figure was much lower. Cremdean sought rescission or damages for misrepresentation. Nash sought to rely on a footnote clause in the invitation to tender document that said although statements (like the planning permission) ‘are believe to be correct their accuracy is not guaranteed’ errors would not annul the sale and pre-contract statements did not form part of the offer. Also, any purchaser should satisfy himself. Cremdean Properties Ltd argued that the exclusion fell within MA 1967 s 3 and was unreasonable.
Judgment
Bridge LJ held that the footnote was an exclusion clause within s 3. He noted that Nash’s argument that the footnote was effective to nullify representations in the document altogether (not just exclusions) and resulted that no representation had ever been made. He said this argument altogether, and that such a result would be ‘remarkable’. He distinguished Overbrooke Estates Ltd v Glencombe Properties LtdOverbrooke Estates Ltd v Glencombe Properties Ltd
Overbrooke Estates Ltd v Glencombe Properties Ltd [1974] 3 All ER 511 is an English contract law case, concerning misrepresentation.-Facts:...
situation had no effect here, because here the agents that published the documents always had Nash’s authority.
He added that it would be enough to go by ordinary interpretation principles, that the footnote was an exclusion. But even if an ingenious draftsman had said that ‘no representation is being made by our representations’ or something, s 3 could still not be circumvented.
Scarman LJ concurred. He said that the logic of Nash's argument was appealing that,
Buckley LJ concurred.
See also
- English contract lawEnglish contract lawEnglish contract law is a body of law regulating contracts 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 across the Commonwealth , and the United States...
- Misrepresentation in English lawMisrepresentation in English lawMisrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...