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Bisset v Wilkinson [1927] AC 177

Facts:

Seller of New Zealand land told Buyer the carrying capacity for sheep. The capacity was seen to be less after sale. Buyer denied payment.
Seller sued.

Ratio:

A statement of opinion/belief is not the same as a statement of fact, so an opinion which turns out to have been unjustified will not amount to misrepresentation.

When the facts are known to both parties.

Analysis:

Sellers were not intended to be a serious representation, qualified by any knowledge.
Known to both the parties at the time of contracting: Seller had not used the land for sheep farming, thus any statement as to the capacity would surely be an estimate; facts are equally well known to both parties.

Also, Buyer (D) failed to prove that the farm if properly managed was not capable of being occupied by two thousand sheep.

Holding:

Privy Council:
Appeal allowed in favour of Appellant/Seller.

Comments:

The trial judge (Sim J.) gave judgment for Plaintiff.
On appeal the Court of Appeal reversed the decision: judgment given for Respondent on the claim and counterclaim, the contract being rescinded, and the case remitted for inquiries.

Plaintiff-Seller v Defendant-Buyer --> P-S
Appellant-Buyer v Respondent-Seller --> A-B
Appellant-Seller v Respondent-Buyer --> A-S


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