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 describes what an actionable misrepresentation is, the essential elements of the Misrepresentation Act 1967 (MA 1967) and provides a comparison with other similar claims. For related information on the key elements for establishing a misrepresentation, see Practice Notes:
Misrepresentation—what statements will establish a claim?
Misrepresentation—what is inducement?
Misrepresentation—falsity (fraudulent, innocent or negligent misrepresentation)
For a summary of the practical considerations in misrepresentation claims contrasted with negligent misstatement claims, see Practice Note: Claiming negligent misrepresentation or negligent misstatement—practical considerations.
A claim for misrepresentation arises where one party to a contract (the representor) made an untrue statement that induced the other party (the representee) to enter into the contract.
A claim may be made where the representation is made by one contracting party's agent or even, in limited circumstances, where it is made by a third party, see Practice Note: Who can be a party to a claim for misrepresentation?
Where there has been a misrepresentation, the representee has a right to rescind the contract whether the misrepresentation was:
unless one of the bars to rescission exists (see Practice Note: Misrepresentation—rescission as a remedy).
If the representee has suffered loss, they may also (or alternatively to rescission) claim damages unless the representor can prove that they reasonably believed the facts they represented were true.
Note, however, that in cases of innocent
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