What case defines misrepresentation?

Fraudulent misrepresentation was defined by Lord Herschell in Derry v Peek (1889) as a false statement that is “made (i) knowingly, or (ii) without belief in its truth, or (iii) recklessly, careless as to whether it be true or false.” Therefore, if someone makes a statement which they honestly believe is true, then it …

What happens in a case of misrepresentation?

In misrepresentation cases, courts can award compensatory damages to make up for the loss of money a person can suffer as the result of believing a lie. Negligent misrepresentation occurs when a party to a contract does not care enough to verify information before passing it on to those whom he is encouraging to sign a contract.

Can a non-party make a misrepresentation in a contract?

Party to contract. – Misrepresentation must be made by a party to the contract, though it can be made via a party’s agent. There is no remedy in contract law for a misrepresentation made by a non-party; there may be, however, a remedy in tort (see below).

Is there a remedy in contract law for misrepresentation?

There is no remedy in contract law for a misrepresentation made by a non-party; there may be, however, a remedy in tort (see below). C. Inducement – To be actionable, the misrepresentation must influence a party in deciding whether or not to enter into the contract. The misrepresentation need not be sole inducement, just one of the inducements.

Is the Misrepresentation Act 1967 applicable to negligent misrep?

2(1) Misrepresentation Act 1967 states that the same remedies are available where the statement was made negligently as if it were made fraudulently. Royscott v Rogerson confirmed that the principle in fraudulent misrep relating to tortious damages applied also in negligent misrep:

What are three types of misrepresentation in contract law?

Three Types of Misrepresentation. There are three types of misrepresentation in contract law: Fraudulent Misrepresentation. Negligent Misrepresentation. Innocent Misrepresentation.

What is the definition of fraudulent misrepresentation?

Fraudulent Misrepresentation. As the name implies, fraudulent misrepresentation is a misrepresentation that is made fraudulently. In the case of Derry vs. Peek[1], it was aptly defined as: A false statement made knowingly without belief in its truth, or made recklessly, carelessly without concern as to its truth.

Which is an example of an innocent misrepresentation?

A good example of an innocent misrepresentation is in the case of Derry vs. Peek[7]. In this case, a company was statutorily incorporated by the British Parliament to construct tramways by means of animal power (horses). However, if the consent of the Board of Trade was obtained, they could make use of steam power.