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Attwood v Small [1838] UKHL J60

The claimants purchased Corngreaves estate from the defendant for £600,000. Corngreaves estate consisted of mining land, iron works and various properties including a mansion house. Many of the properties were subject to leasehold and generated income. The mines were to be worked by and profit to go to the claimant. A preliminary agreement was made between the parties whereby the claimant agreed to purchase subject to being satisfied that the reports and accounts given by the defendant were accurate. The claimant then had his accountants and directors check out the accounts and reports who were satisfied they were accurate. The claimant then proceeded with the purchase. It then transpired that the accounts had greatly exaggerated the income generated by the estate and the claimant sought to rescind the contract based on the misrepresentations contained in the reports and accounts.

Held:

The claimant was unsuccessful. By getting his own experts to check out the reports he had not relied on the accounts but his own judgment.
 
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