Misrepresentation—damages as a remedy
Published by a LexisNexis Dispute Resolution expert
Practice notesMisrepresentation—damages as a remedy
Published by a LexisNexis Dispute Resolution expert
Practice notes
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:
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Misrepresentation—rescission as a remedy
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Misrepresentations—excluding and limiting liability for them
When can you claim damages as a remedy for misrepresentation?
MA 1967 provides a statutory basis for the recovery of damages in cases of misrepresentation under MA 1967, s 2 in addition to the common law action for damages for fraudulent misrepresentation or the closely related tort of deceit.
Thus the position now is that 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:
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where the misrepresentation was fraudulent (already available at common law)
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where the misrepresentation was not fraudulent, but the representor is unable to show that they had reasonable grounds
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