Disclaimer: This work was produced by one of our expert legal writers, as a learning aid to help law students with their studies.

Any opinions, findings, conclusions, or recommendations expressed in this material are those of the authors and do not reflect the views of LawTeacher.net. Any information contained in this case summary does not constitute legal advice and should be treated as educational content only.

Thomas Witter Ltd v TBP Industries Ltd

320 words (1 pages) Case Summary

26th Jun 2019 Case Summary Reference this In-house law team

Jurisdiction / Tag(s): UK Law

Thomas Witter Ltd v TBP Industries Ltd [1996] 2 All ER 573

Contract law – Misrepresentation – Sale of a business

Facts

The defendant was a conglomerate organisation that negotiated to sell a carpet company to the plaintiff. During the negotiation of the sale of the company, the defendant made a negligent representation that there would be a one-off expense of £120,000 in accounts but that this spread the cost of producing the accounts over two years rather than writing the cost off completely. The contract of sale also included a clause which stated that the plaintiff acknowledged they had not entered into the agreement on the basis of any representation or warranty made by the defendant. The plaintiff claimed for negligent misrepresentation on the basis that the statement regarding the accounts that was made by the defendant was inaccurate and the defendant attempted to rely on the limitation clause in the agreement between the parties.

Issue

The issue for the court was to understand whether the defendant could rely on the limitation clause in the contract. If the defendant could rely on the clause, this would enable them to avoid liability for the representations that they had made during the negotiation of the sale.

Decision/Outcome

The court found in favour of the plaintiff. It did so because the clause regarding the representation could not have effect as per the Misrepresentation Act 1967, section 1 and the Misrepresentation Act 1967, section 3 as the clause attempted to exclude all forms of misrepresentation, including fraudulent misrepresentation, from the agreement. Moreover, the court found that the clause only applied to breaches of the contractual agreement and did not apply to inducing the plaintiff into the agreement.

Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

Related Content

Jurisdictions / Tags

Content relating to: "UK Law"

UK law covers the laws and legislation of England, Wales, Northern Ireland and Scotland. Essays, case summaries, problem questions and dissertations here are relevant to law students from the United Kingdom and Great Britain, as well as students wishing to learn more about the UK legal system from overseas.

Related Articles