Where the representor1 and representee2 have entered into a contract after the representation, the contract may contain a term purporting to exclude or restrict liability for misrepresentation. At common law such a clause will be ineffective if it seeks to exclude liability for fraudulent misrepresentation for a person cannot escape liability for his own fraudulent statements by inserting in a contract a clause that the other party is not to rely on them3. More generally the effect of such a term is governed by statute. The statutory provision applies to a contractual term which would exclude or restrict either
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