Ferguson v. Wilson [1904] ScotLR 41_601 (04 June 1904)

Ferguson v. Wilson [1904] ScotLR 41_601 (04 June 1904)

The contract was reduced because the pursuer entered into it under essential error induced by the defender's misrepresentation of the business's profitability for 1902; the misrepresentation was material, related to facts within the defender's knowledge, and was relied upon by the pursuer, making proof of fraud unnecessary for rescission.

Citation
[1904] ScotLR 41_601
Parties
Pursuer: James Lewis Ferguson; Defender: Charles Fyfe Wilson
Jurisdiction
Scotland
Judgment Date
04 June 1904
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House
Outcome
contract reduced (rescinded) in favour of pursuer; appeal dismissed; interlocutor of Lord Ordinary adhered to
Legal Topics
Misrepresentation, Essential Error, Reduction of Contract, Innocent Misrepresentation, Rescission
Contract Law Partnership Law Misrepresentation Essential Error Reduction of Contract Innocent Misrepresentation Rescission

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Parties

James Lewis Ferguson

Pursuer

Charles Fyfe Wilson

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House

Legal Issues

  1. 1 Whether the contract of partnership can be reduced on the ground of essential error induced by misrepresentation, even if the misrepresentation was innocent and not fraudulent.
  2. 2 Whether representations made by the defender regarding the profitability of the business constituted statements of fact or mere opinion.

Ratio Decidendi

The contract was reduced because the pursuer entered into it under essential error induced by the defender's misrepresentation of the business's profitability for 1902; the misrepresentation was material, related to facts within the defender's knowledge, and was relied upon by the pursuer, making proof of fraud unnecessary for rescission.

Court Disposition

contract reduced (rescinded) in favour of pursuer; appeal dismissed; interlocutor of Lord Ordinary adhered to

Orders

  • Minute of agreement and draft contract of partnership reduced and declared void
  • No damages awarded; only rescission granted