What is misrepresentation explain?

What is misrepresentation explain?

A misrepresentation is an untrue statement of a material fact made by one party which affects the other party’s decision in corresponding to a contract. In such a contract dispute, the party who made the misrepresentation becomes the defendant and the aggrieved party is the plaintiff.

Is misrepresentation a crime?

Misrepresentation can be both a civil wrong (a tort) or a criminal wrong. If the misrepresentation rises to the level of fraud, a defendant can face serious legal consequences. Misrepresentation can occur in the creation of contracts and in many different industries.

What is the effect of misrepresentation?

The effect of an actionable misrepresentation is to make the contract voidable, giving the innocent party the right to rescind the contract and/or claim damages.

What are the remedies for misrepresentation in contract law?

The remedies for misrepresentation will depend on the type of misrepresentation that has occurred. There are three main remedies, namely: Rescission – Rescission of the contract essentially unravels the contract and seeks to place the parties to the contract back in the position they were in before the contract was entered into.

What are the different types of misrepresentation?

There are three types of misrepresentation―innocent, negligent, and fraudulent. In case the false statement was made without any knowledge of the same or with no bad intent, it qualifies for innocent misrepresentation. Fraudulent misrepresentation, on the other hand, is when the untrue statement is made intentionally, to trick the other party.

What can be done about an innocent misrepresentation?

Here, the claimant may seek rescission and/or damages [2] (as well as any possible breach of contract damages). An innocent misrepresentation occurs where a misrepresentation was made but the maker can show that he had reasonable grounds to believe its statement was true.

What happens in the case of a fraudulent misrepresentation?

In case of a fraudulent misrepresentation, a rescission ensures that the contract is completely terminated, i.e., things are brought back to how they were in the beginning of the contract.

What are the remedies for misrepresentation in a contract?

So by keeping this in mind, The remedies for misrepresentation are: Rescind: Rescind means to cancel. When the aggrieved party wants he can claim for cancellation of the contract and/or damages. Under contract law, rescission is defined as the unmaking of a contract between the parties.

What is the definition of misrepresentation in law?

Misrepresentation is about giving of inaccurate information by one party (or their agent) to the other before the contract is made which induces them to make the contract. If a person makes a contract in reliance on misrepresentation and has to face loss as a result, they can revoke the contract or claim damages.

What are the remedies under the Misrepresentation Act 1967?

Under s.2(2) Misrepresentation Act 1967the remedies for an innocent misrep are rescission ordamages in lieu of rescission. The claimant cannot claim both. Damages are assessed on normal contractual principles. Bars to rescission

Which is an equitable remedy for a misrepresentation?

– Equitable remedy available for all types of misrepresentation. – Innocent party must exercise choice: to rescind or to affirm contract. – Effect of rescission: parties are put back to their pre-contractual position. – Notice: Generally, innocent party must notify representor of decision to rescind.