459. Actions under the Misrepresentation Act 1967.

To bring an action under the Misrepresentation Act 1967 the claimant must show that he has a prima facie case for misrepresentation1, after which the burden of proof shifts to the defendant to disprove negligence2. A misrepresentation is negligent if the defendant cannot prove that he had grounds for belief and did believe the statement he made was true up to the time the contract was made3. The remedies for a negligent misrepresentation are rescission of the contract and damages4.

The court has a discretion as to whether to order rescission of the contract and may instead award damages in