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Misrepresentation in English law To amount to a misrepresentation, the statement must be untrue or seriously misleading.
However, an action can be brought if the intention never actually existed, as in Edgington v Fitzmaurice. This means that only those who were an intended recipient of the representation may sue, as in Peek v Gurney  It is not necessary for the representation to have been be received directly; it is sufficient that the representation was made to another party with the intention that it would become known to a subsequent party and ultimately acted upon by them.
Inducement[ edit ] The misled party must show that he relied on the misstatement and was induced into the contract by it.
In Attwood v Small  The seller, Small, made false claims about the capabilities of his mines and steelworks. The House of Lords held that Attwood could not rescind the contract, as he did not rely on Small but instead relied on his agents.
Edgington v Fitzmaurice  confirmed further that a misrepresentation need not be the sole cause of entering a contract, for a remedy to be available, so long as it is an influence. Redgrave said Hurd could inspect the accounts to check the claim, but Hurd did not do so.
This suggests that, having relied on a misrepresentation, the misled party has the onus to discover the truth "within a reasonable time". In Doyle v Olby ,  a party misled by a fraudulent misrepresentation was deemed NOT to have affirmed even after more than a year.
Although short and apparently succinct, the Act is widely regarded as a confusing and poorly drafted statute which has caused a number of difficulties, especially in relation to the basis of the award of damages.
Prior to the Misrepresentation Actthe common law deemed that there were two categories of misrepresentation: The effect of the act is primarily to create a new category by dividing innocent misrepresentation into two separate categories: Once misrepresentation has been proven, it is presumed to be "negligent misrepresentation", the default category.
Conversely, the defendant may try to show that his misrepresentation was innocent. Negligent misrepresentation is simply the default category.
The misled party may rescind and claim damages under s. The court may "declare the contract subsisting" and award damages in lieu of rescission, but s. Fraudulent misrepresentation is defined is the 3-part test in Derry v Peekwhere the defendant is fraudulent if he: The misled party may rescind and claim damages for all directly consequential losses.
Doyle v Olby  Innocent misrepresentation is "belief on reasonable grounds up till the time of the contract that the facts represented are true". The misled party may rescind but has no entitlement to damages under s. However, the court may "declare the contract subsisting" and award damages in lieu of rescission.
The way we depict a race has been noted to be effective in understanding the backgrounds of their given culture. This standpoint is saying that misrepresentation can be beneficial in relating to others because it gives us insight into a commonly found trait that is in relation to the culture.
There is a flaw in this view because the representations may stem from what someone has experienced, but does not classify a whole group of people. Unless your experience includes the influence of the culture, you cannot speak on something that you genuinely know nothing about.
The traits that are placed in a culture without empathy to understand are invalid and cannot be justified because that is not a culture that you identify with nor took the time to understand.
As prideful and selfish humans by nature, it takes self-examination and taking the time to actually understand one another instead of having to be the one to label and classify things as we think they are. You must first learn about who they are, what they are about, and what they have been through to even partially have a chance at deception.
You can find some truth in things, but when the purpose is to degrade someone, it is not justified. Remedies[ edit ] The misled party may normally rescind the contract, and sometimes may be awarded damages as well or instead of rescission.of law to particular facts so that it is a statement about the effect of the law in a particular situation, it can be actionable as misrepresentation – see e.g.
Pankhania v. If a party to a contract makes a misrepresentation of fact without suffering any repercussions for that misrepresentation, then few people would feel comfortable binding themselves to that contract.
Misrepresentation is an important concept in the contract laws of England, Wales, and certain other Commonwealth countries. Civil/commercial fraud, fraudulent misrepresentation and the tort of deceit What is fraudulent misrepresentation? Civil or commercial fraud commonly means a fraudulent misrepresentation, which can lead to a claim under the Misrepresentation Act or the common law tort of deceit.
A claim for misrepresentation arises where one party to a contract (the representor) made an untrue statement of fact that induced the other (the representee) to enter into the contract.
Claims for misrepresentation are governed by both the common law and the Misrepresentation Act The remedy available depends on the type of misrepresentation, but generally consists of rescission and or damages.
The right to rescind the contract may be lost in some circumstances. The law relating to misrepresentation is mainly found in common law with the Misrepresentation Act providing some further details. There is a negligent misrepresentation under the Misrepresentation Act where a statement is made carelessly or without reasonable grounds for believing its truth.
When a claim for negligent misrepresentation under the Act is based on negligence, the law states that the person who made the misrepresentation has to disprove the negligence.