East v Maurer [1990] EWCA Civ 6 is an English contract law

English contract law

English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...

 case concerning misrepresentation

Misrepresentation in English law

Misrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...

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Facts

Maurer fraudulently told East he would not run a competing hair salon, so East bought the salon from Maurer. Maurer started run a competing hair salon. East lost business. East then sued Maurer for deceit.

Judgment

The Court of Appeal held that East could recover the price paid minus selling price, plus trading losses, plus expenses of buying and selling an carrying out improvements, plus £15,000 in foregone profits. It noted that foregone profits were recoverable in tort where the claimant might be expected to make them in a similar hairdressing business. To recover profits that would have been particular to this business, breach of a contractual warranty needed to be shown.

See also

• English contract law
  English contract law
  English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
  
  
• Misrepresentation in English law
  Misrepresentation in English law
  Misrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...
  
  
• Smith New Court Ltd v Scrimgeour Vickers (Asset Management) Ltd
  Smith New Court Ltd v Scrimgeour Vickers (Asset Management) Ltd
  Smith New Court Ltd v Scrimgeour Vickers Ltd [1996] is an English contract law case concerning misrepresentation. It illustrates the damages available for deceit.-Facts:...
  
  [1997] AC 254, Lord Steyn said East ‘shows that an award based on the hypothetical profitable business in which the plaintiff would have engaged but for deceit is permissible: it is classic consequential loss.’