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With v O’Flanagan [1936] Ch 575

Facts: D desiring to sell his medical practice got into touch with P in January 1934, and stated that his practice had brought in £2,000 per annum for the 3 previous years and that he had a panel of 1,480 patients (which was true when made). Negotiations lasted until May, when the contract of sale was signed. During this period, D was ill and forced to absent himself often from the practice, meaning that the practice dwindled to practically nothing and the number of panel patients was reduced to 1,260. These facts were not disclosed to P. After discovery of facts, P brought an action for rescission.


Held: P was entitled to rescind the contract as no disclosure was made. Although the statements were true when made, they had become untrue and there was an obligation for D to disclose to P. Such an obligation to disclose arises in the case of all contracts and not only in the case of those uberrimae fidei (utmost good faith) or where the representation is in respect of an intention.

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