Q&As

Land was sold by (A) in 2009 to a client’s subsidiary (X), and then transferred to the client (Y). In 2016 a comment was made by a third party notifying Y of an oil spill which occurred during A’s ownership and was known by them. A represented that there was no contamination of land on sale. Is there an extended limitation period from the point at which X became aware of the misrepresentation? Can Y make a claim against X for the remediation costs in order that X can in turn sue A?

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Published on LexisPSL on 15/01/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • Land was sold by (A) in 2009 to a client’s subsidiary (X), and then transferred to the client (Y). In 2016 a comment was made by a third party notifying Y of an oil spill which occurred during A’s ownership and was known by them. A represented that there was no contamination of land on sale. Is there an extended limitation period from the point at which X became aware of the misrepresentation? Can Y make a claim against X for the remediation costs in order that X can in turn sue A?
  • Misrepresentation
  • Limitation
  • Can a claim be made by Y against the X for the remediation costs in order that X can sue the seller for losses?

Land was sold by (A) in 2009 to a client’s subsidiary (X), and then transferred to the client (Y). In 2016 a comment was made by a third party notifying Y of an oil spill which occurred during A’s ownership and was known by them. A represented that there was no contamination of land on sale. Is there an extended limitation period from the point at which X became aware of the misrepresentation? Can Y make a claim against X for the remediation costs in order that X can in turn sue A?

Misrepresentation

An important part of the process of buying or leasing a property is raising pre-contract enquiries.

If replies to enquiries are inaccurate, the seller may be liable for misrepresentation. Failing to disclose an item in replies to enquiries may also lead to a misrepresentation. See Practice Note: Enquiries before contract.

A misrepresentation is a false statement of fact made by one party to another, which is not a term of the contract but induces the other party to enter into the contract. The misrepresentation must have been material and must have been relied on. See Practice Note: Misrepresentation, misstatement and non-disclosure in property matters.

  1. fraudulent misrepresentation: is when the giver of the information fails to make enquiries to check whether the misrepresentation is false. There need be no dishonest motive, but this type of

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