Under the Misrepresentation Act 1967, 1where a person has entered into a contract after a misrepresentation has been made to him by another party to it and as a result he has suffered loss, then, if the person making the misrepresentation would be liable to damages in respect of it had the misrepresentation been made fraudulently, that person is so liable notwithstanding that the misrepresentation was not made fraudulently, unless he proves that he had reasonable ground to believe and did believe up to the time the contract was made that the facts represented were true2.
This statutory liability is
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