What is misrepresentation in contract law PDF?
What is misrepresentation in contract law PDF?
What is misrepresentation? – An untrue statement of fact made by one party to the other which was intended and did induce the latter to enter into the contract.
What is misrepresentation in contract 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.
How do you prove misrepresentation in contract law?
To prove fraudulent misrepresentation has occurred, six conditions must be met:
- A representation was made.
- The claim was false.
- The claim was known to be false.
- The plaintiff relied on the information.
- Made with the intention of influencing the plaintiff.
- The plaintiff suffered a material loss.
How can misrepresentation invalidate a contract?
The impact of an actionable misrepresentation is to make the contract voidable, giving the victims the right to withdraw the contract and/or claim damages. Commonly, the plaintiff must show five elements in order to be successful in a misrepresentation suit.
What must be proven in order to have a contract set aside for misrepresentation?
A misrepresentation occurs when:
- an untrue statement of fact or law is made by one party (A) to another party (B);
- that untrue statement induces B to enter into a contract; and.
- B suffers loss as a result.
What are the 3 criteria for a statement to be treated as a misrepresentation?
For a misrepresentation to be actionable, it has to fulfil three requirements: – there must be an untrue statement; – it must be a statement of fact, not mere opinion; – and it must have induced the innocent party to enter the contract.
What 3 things must be present for it to be a 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 …