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PP 2002/147

You don’t have to tell a lie to break a contract
Depending upon how things went wrong, a claim against another party to a contract may be based upon breach of contract, misrepresentation, or both.
When considering misrepresentation, it pays to remember that you will not get very far by showing that a promise has been broken. The gist of the claim is that you were induced to enter into the contract by a misleading statement of certain material facts. The making of a promise will not amount to such a statement unless the promisor either had no intention of keeping his promise or no reasonable grounds for believing that the promise could be kept.
For an illuminating exercise in this area, see the judgment of Park J in Inntrepreneur Pub Co (CPC) v Sweeney [2002] 25 EG 152 (CS).

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