The following Dispute Resolution practice note Produced in partnership with Charles Spragge of Druces provides comprehensive and up to date legal information covering:
This Practice Note considers when damages are available as a remedy for a misrepresentation claim with reference to the Misrepresentation Act 1967 (MA 1967).
For consideration of when the courts will rescind a contract for misrepresentation and when parties can validly exclude or limit liability for misrepresentation, see Practice Notes:
Misrepresentation—rescission as a remedy
Misrepresentations—excluding and limiting liability for them
If the representee suffered loss as a result of having been induced to enter into the contract by the misrepresentation, they may have a claim for damages in the following circumstances:
where the misrepresentation was fraudulent
where the misrepresentation was not fraudulent, but the representor is unable to show that they had reasonable grounds to believe the facts stated were true
where the misrepresentation was not fraudulent, but the court decides in its discretion to award damages in lieu of rescission
Damages may be awarded in lieu of rescission whether or not the representee was entitled to damages in any event.
But if the representee was entitled damages anyway, they will be adjusted to take account of any damages awarded in lieu of rescission.
Damages for negligent misrepresentation are assessed in the same way as they are for fraudulent misrepresentation (MA 1967, s 2(1)).
In assessing damages for both fraudulent and negligent misrepresentation, the principles applicable
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