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 the requirement for there to be a false statement of fact for an actionable misrepresentation. For details of the other key ingredients for a misrepresentation claim, see the following Practice Notes:
Misrepresentation—what is inducement?
Misrepresentation—falsity (fraudulent, innocent or negligent misrepresentation)
The key elements of an actionable misrepresentation are:
the statement relied on by the representee was a statement of fact made to them by or on behalf of the representor
the statement was intended by the representor to induce the representee to enter into the contract
the statement actually induced the representee to enter into the contract
the statement had the character of a representation
the representation was false
Additionally, where damages are claimed (in addition or alternatively to rescission), the representee must establish that misrepresentation caused them to suffer loss. (See Practice Note: Misrepresentation—damages as a remedy).
For a detailed summary of the different aspects of when an actionable representation has been made, see Jacobs J at paras – in Vald. Nielsen v Baldorino. See also News Analysis: Court confirms settled principles on fraud and conspiracy claims (Vald. Nielsen Holding A/S and another company v Baldorino and others).
For a pre-contractual statement to be an actionable representation it must have been a statement of fact. The statement:
may have been express or implied, and
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