Misrepresentation in uk law

Court of Appeal clarification Misrepresentation remedies:

Misrepresentation in uk law

Misrepresentation in uk law

If a party to a contract makes a misrepresentation of fact without suffering any repercussions for that misrepresentation, then few people would feel comfortable binding themselves to that contract.

Misrepresentation is an important concept in the contract laws of England, Wales, and certain other Commonwealth countries. There are three main types of misrepresentation, fraudulent, negligent, and innocent. Below is a brief overview of each type and the remedies for them.

A misrepresentation is an untrue statement of fact that induces a party to enter a contract.

Misrepresentation in uk law

Furthermore, to pursue a claim against the person who made the misrepresentation, the claimant must show that he or she relied on the untrue statement of fact when deciding to enter the contract and that the misrepresentation led to damages to the claimant.

An opinion, it is important to keep in mind, even if considered false, is not the same as a fact and generally does not figure in cases surrounding misrepresentation. Fraudulent misrepresentation Fraudulent misrepresentation is very serious.

Fraudulent misrepresentation occurs when a party to a contract knowingly makes an untrue statement of fact which induces the other party to enter that contract. Fraudulent misrepresentation also occurs when the party either does not believe the truth of his or her statement of fact or is reckless as regards its truth.

A claimant who has been the victim of alleged fraudulent misrepresentation can claim both rescission, which will set the contract aside, and damages. Negligent misrepresentation A party that is trying to induce another party to a contract has a duty to ensure that reasonable care is taken as regards the accuracy of any representations of fact that may lead to the latter party to enter the contract.

If such reasonable care to ensure the truth of a statement is not taken, then the wronged party may be the victim of negligent misrepresentation. As with fraudulent misrepresentation, claimants can pursue both damages and a rescission of the contract.

Innocent misrepresentation In innocent misrepresentation, a misrepresentation that has induced a party into a contract has occurred, but the person making the misrepresentation had reasonable grounds for believing it was true at the time the representation was made.

A claimant who has been the victim of innocent misrepresentation can still pursue damages, but he or she cannot pursue rescission.

Misrepresentation remedies: Court of Appeal clarification - Walker Morris

Again, to pursue damages it must be shown that the claimant suffered a loss because of the misrepresentation. The three types of misrepresentation described above are fundamental to understanding contract law in England and many Commonwealth countries. Claims based on allegations of misrepresentation help ensure that contracts are ultimately honored and that unscrupulous or negligent behavior does not go unpunished.Misrepresentation Act CHAPTER 7.

An Act to amend the law relating to innocent misrepresentations and to amend sections 11 and 35 of the Sale of Goods Act The law of misrepresentation is an amalgam of contract and tort; and its sources are common law, equity and statute.

The common law was amended by the Misrepresentation Act The general principle of misrepresentation has been adopted by the USA and various Commonwealth countries.

The three types of misrepresentation described above are fundamental to understanding contract law in England and many Commonwealth countries. Claims based on allegations of misrepresentation help ensure that contracts are ultimately honored and that unscrupulous or negligent behavior does not go unpunished.

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Jun 11,  · At common law, the remedy for innocent misrepresentation is rescission of the contract with no damages being awarded, but under the Misrepresentation Act the court has power to award damages in lieu of rescission.

The remedy available depends on the type of misrepresentation, but generally consists of rescission and or damages. The right to rescind the contract may be lost in some circumstances. The law relating to misrepresentation is mainly found in common law with the Misrepresentation Act .

The effect of an actionable misrepresentation is to make the contract voidable, giving the innocent party the right to rescind the contract and/or claim damages.

schwenkreis.com STATEMENT OF FACT An actionable misrepresentation must be a false statement of fact, not opinion or future intention or law.

Misrepresentation - Wikipedia