Steelux v Edmonstone [2005] JLR 152 (03 May 2005)

Steelux v Edmonstone [2005] JLR 152 (03 May 2005)

A promissory note is void ab initio if the signatory's consent was induced by reliance on a fraudulent misrepresentation, regardless of whether the maker knew the statement was false.

Citation
[2005] JLR 152
Parties
Applicant: Steelux; Respondent: Edmonstone
Jurisdiction
Jersey
Judgment Date
03 May 2005
Procedural Posture
Civil / Judgment
Outcome
promissory note may be void ab initio if induced by fraudulent misrepresentation
Legal Topics
Bills of Exchange, Promissory Notes, Fraudulent Misrepresentation, Void Ab Initio
Commercial Law Bills of Exchange Promissory Notes Fraudulent Misrepresentation Void Ab Initio

Case Brief

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Parties

Steelux

Applicant

Edmonstone

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether a promissory note may be void ab initio due to fraudulent misrepresentation
  2. 2 Whether it is necessary for the maker to know the statement was false

Ratio Decidendi

A promissory note is void ab initio if the signatory's consent was induced by reliance on a fraudulent misrepresentation, regardless of whether the maker knew the statement was false.

Court Disposition

promissory note may be void ab initio if induced by fraudulent misrepresentation