This document provides a clear summary of the law surrounding misrepresentation. It efficiently outlines the three main types of misrepresentation: innocent misrepresentation, negligent misrepresentation and fraudulent misrepresentation. Additionally this summary explains the remedies tailored to e...
In order for C to claim against D he/she must prove that a misrepresentation has taken
place.
A misrepresentation is a false statement (Spice Girls v Caprilia) of a material fact (Bisset v
Wilkinson) made by a party to a contract that induces the other party to enter into the
contract (Redgrave v Hurd). In this case...
• Silence does not amount to a misrepresentation – Fletcher v Krell
• Silence can be a misrepresentation is it is a half truth – Dimmock v Hallet
A misrepresentation can be innocent, negligent or fraudulent. In this case...
An innocent misrepresentation is a false statement made honestly - the person making
the statement always believed it to be true and there was never an element of negligence
in that belief.
A negligent misrepresentation is based on a negligent misstatement (Hedly Byrne v
Heller). Negligent misrepresentation is also based on the statutory provision provided by
the Misrepresentation Act 1967.
A fraudulent misrepresentation is when a statement is made without any belief in its
truth (Derry v Peak)
The remedy for an innocent misrepresentation is...
- The remedy of rescission (i.e. an equitable remedy whereby the parties are
returned to the circumstances before the contract was created). However,
rescission will not be available if:
• restitution to the original pre-contract position is impossible (Clarke v
Dickinson)
• the contract is affirmed (i.e. the innocent party carries on the contract
although being aware of the misrepresentation). The right to rescind the
contract is then lost as in Long v Lloyd.
• delay defeats equity as shown is Leaf v International Galleries.
• a third part has gained rights over the property as shown in Lewis v Averay.
- There is no right to the remedy of damages, however, the court has discretion
to award damages instead of rescission under s.(2) of the Misrepresentation Act
1967.
The remedy for a negligent misrepresentation is...
COMMON LAW
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