Salt v Stratstone Specialist Ltd [2015]

Salt v Stratstone Specialist Ltd [2015] EWCA Civ 745 addressed the issue of whether depreciation in the value of an item involved in a contract would bar the remedy of rescission, especially when compensable. It also delved into the relationship between rescission and damages awarded under Section 2(2) of the Misrepresentation Act 1967 (MA 1967).

The facts involved a purchase where the car dealer represented a sports car as brand new when, in reality, it was not. The buyer discovered defects in the car but only sought to return it after a year. The buyer pursued rescission of the contract and sought damages for misrepresentation.

The Court, as held by Longmore LJ, emphasised that neither the depreciation of the car nor the intermittent enjoyment it provided should prevent the possibility of rescission, as such aspects could be rectified through compensation. Longmore LJ stressed that the burden to establish evidence of depreciation or usage, crucial for obtaining compensation, rested on the representor.

Regarding the lapse of time, the Court ruled that there had not been an unreasonable delay in seeking rescission. The buyer had only discovered the car dealer's misrepresentation during pre-trial disclosure, which justified the timing of the request for rescission.

Longmore LJ highlighted that rescission is the primary remedy for misrepresentation and should be granted if feasible. Furthermore, damages awarded under Section 2(2) of the MA 1967 can only be considered when rescission remains an available remedy. If a bar to rescission applied, it would consequently preclude damages under Section 2(2) of the MA 1967 as well.

The judgment clarified that Section 2(2) of the MA 1967 does not introduce a new remedy but provides the court with discretion to limit the remedy of rescission. This case outlined the intricate relationship between rescission and damages in instances of misrepresentation, emphasising the importance of the availability of rescission for the consideration of damages under the Act.
Back to blog

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding. Speed up your revision with us now.

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.