william derry, j. c. wakefield, m. m. moore, j. pethick, and s. j. wilde appellants; and sir henry william peek, baronet respondent. 1889 july Derry v Peek (1889) 14 App Cas 337.
(H.L.(E.)) 35 of the Act, inasmuch as he understood that the consent was obtained. The misled party may normally rescind the contract, and sometimes may be awarded damages as well (or instead of rescission).. Fraud and Deceit — Fiduciary Relationship — Derry v. Peek Criticized — A recent decision of the House of Lords is interesting for its definite limitation and implied disapproval of the English rule that requires proof of actual fraud, with knowledge of the falsity of the representations, to support an action of … The House of Lords determined that, when issuing a prospectus, a company has as no general duty to use "care and skill" in to avoid making misstatements. Derry v Peek UKHL 1 is a case on English contract law, fraudulent misstatement, the tort of deceit.
The essence of fraud is the absence of honest belief; in Derry v Peek , a share prospectus falsely stated that the company had the right to use mechanical power to draw trams, without explaining that governmental consent was required for this. DERRY v. PEEK.
This entry about Derry V. Peek has been published under the terms of the Creative Commons Attribution 3.0 (CC BY 3.0) licence, which permits unrestricted use and reproduction, provided the author or authors of the Derry V. Peek entry and the Encyclopedia of Law are in each case credited as the source of the Derry V. Peek entry. In common law jurisdictions, a misrepresentation is an untrue or misleading statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. Derry v Peek established a 3-part test for fraudulent misrepresentation, whereby the defendant is fraudulent if he: (i) knows the statement to be false, or (ii) does not believe in the statement, or (iii) is reckless as to its truth.. A special Act incorporating a tramway company provided that the carriages might be moved by animal power and, with the consent of the Board of Trade, by steam power. Mr. Moore states that he was under the impression that the passage in the prospectus represented the effect of sect. (a) Fraudelent Misrepresentation. In the leading case of Derry v Peek, Lord Herschell, stated that the definition of fraudulent misrepresentation was if a false statement was made (1) knowingly, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false’, Lord Herschell. The directors issued a prospectus containing a statement that by this special Act the company had the right to use steam instead of horses.