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Smith v Land & House Property Corp [1884]

Facts

  • The claimant purchased a hotel after one of the tenants was described as most desirable

Issue

  • When the defendant’s description was found to have been severely incorrect, could the contract be rescinded?

Decision

  • Yes

Reasoning

  • An opinion itself may not form a misrepresentation, but the facts which formed that opinion may give rise to a misrepresentation; an opinion must be made with reasonable grounds supporting it
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