MISTAKE AND MISREPRESENTATION TUTORIAL QUESTIONS

1. Bernard owns an oil painting and a smaller pencil sketch, which are both thought to be by
Daniel, an artist who has recently died, and whose work is fetching increasingly large
amounts at auction. Bernard writes to his friend Edwina, offering to sell her ‘my little
Daniel picture’ (meaning the sketch) for £2,000. Edwina, who knows little about modern
art, accepts, saying: ‘I am pleased to accept your offer. As you may know, I am hoping to
build up a collection of modern paintings.’ Bernard delivers the Daniel sketch while
Edwina is out. Edwina, in fact, wanted the oil painting, not the sketch. Before she can
return it, however, another friend, who is an expert on Daniel’s work, tells her that the
sketch is of poor quality and not worth more than £50. A good quality sketch would have
been worth £700 to £1,000. Bernard, however, who had himself bought the sketch for
£1,500, refuses to take it back, and insists that Edwina must pay him £2,000. The oil
painting is valued at £7,000.

Advise Bernard and Edwina.

2. Elvira advertises an antique clock for sale at £500. She receives a letter from a company
called Timeless Antiques, which is signed by Frederick, expressing interest in buying the
clock. Elvira consults her friend, Dora, who tells her that she, Dora, sold a clock to Timeless
Antiques a year before, and that she found it to be a reputable company which would be
likely to give Elvira a fair price. Elvira, therefore, replies to Frederick, inviting him to visit
her and to view the clock. Elvira’s letter is intercepted by George, one of Frederick’s
employees. He visits Elvira, pretending to be Frederick, and shows her one of Frederick’s
business cards, which he has stolen from Frederick’s desk. George tells Elvira that the
clock is much more valuable than she thought, and is, in fact, worth £5,000. He writes her
a cheque for that amount, drawn on the company’s account, and she allows him to take
the clock away. The cheque is dishonoured, because the bank realises that the signature
on it is a forgery. In the meantime, George has sold the clock to Hazel for £3,000, having
realised that although it was not as rare as he had led Elvira to believe, it was worth
considerably more than £500. Hazel is unaware of any of George’s deceptions. George
has now disappeared, and cannot be traced.

Advise Elvira.