With v O'Flanagan [1936] Ch 575 Court of Appeal

The claimant purchased a medical practice from the defendant. The claimant was induced to buy the practice by the defendant's statement that the practice took £2,000 per annum. This statement was true at the time it was made. However, subsequently the defendant became ill and many patients went elsewhere. By time the sale was completed the practice was virtually worthless.

Held:

Where a statement is rendered false by a change in circumstances there is a duty to disclose the change. A failure to do so will result in an actionable misrepresentation.

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