Schneider v Heath is a very old, yet important case from England and Wales. Given below are its details.
Case Name: Schneider and Another v Heath
Citation: (1813) 3 Camp 506; 170 ER 1462
Court: Court of Common Pleas
Date: 1813
Judge: Sir James Mansfield, Chief Justice
Areas of Law: Contract Law, specifically misrepresentation and fraud
Schneider v Heath (1813) is a notable English contract law case concerning misrepresentation through active concealment. In this case, the defendants sold a ship with the condition that it was to be taken “with all faults.” However, they were aware that the ship was unseaworthy due to a rotten hull. To prevent potential buyers from discovering this defect, the defendants kept the ship afloat during inspections, thereby concealing the hull’s poor condition.
The court held that this deliberate concealment constituted misrepresentation. It was determined that the knowledge of the ship’s captain, who was aware of the defect and participated in the concealment, should be imputed to the owners. Consequently, the contract was set aside.
This case established the principle that actively concealing defects, even when selling an item “with all faults,” can amount to misrepresentation. Sellers are therefore obligated to refrain from deceptive practices that hide known defects from buyers.
List of references:
- https://swarb.co.uk/schneider-v-heath-1813/
- https://gizmo.ai/community/deck/4624810?featureId=10
- https://www.coursehero.com/file/p28kac7/Courthelditwasmisrepresentationnotcompletetruth-Active-concealment/
- https://s3.studentvip.com.au/notes/39219-sample.pdf?v=1595330191
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