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Brief Fact Summary
Brief Fact Summary
Held. Reversed.
* The House of Lords reversed the judgment of the court of appeals, and reinstated the
judgment of the lower court. The court found this to be an action of deceit, under which
the establishment of misrepresentation alone is not enough to prove liability. In this
case, Plaintiff relied on the prospectus, which may have been misrepresentation, but
Defendants reasonably believed they could glean approval of the board of trade and
should not be held liable for their later failure to do so.
Discussion. An action of deceit will only stand in a court when a plaintiff can show not
only misrepresentation, but also that defendants knew they would be unable to follow
through with their representations.