Simpson v Blanch

Simpson and Another v Blanch and Others concerned a dispute between the parties arising from a contract for the sale of a property. The case was heard in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the purchasers were entitled to terminate the contract for sale due to a misrepresentation made by the vendor, and if so, whether the purchasers had affirmed the contract after becoming aware of the misrepresentation. The court also considered the appropriate remedy for the purchasers if they were found to have validly terminated the contract.

The court's reasoning focused on the principles of misrepresentation and affirmation in contract law. It was held that for a misrepresentation to be actionable, it must be a statement of fact, not opinion, and it must have induced the contract. The court further examined the conduct of the purchasers after they discovered the alleged misrepresentation to determine if they had unequivocally affirmed the contract, thereby losing their right to terminate. The principles of election and waiver were also relevant to the court's consideration of affirmation.

The Court of Appeal ultimately found that the purchasers had not been induced by a material misrepresentation and, in any event, had affirmed the contract. Accordingly, the appeal was dismissed.