What is the law for misrepresentation?

What is the law for misrepresentation?

In contract law, misrepresentation involves: An untruth – A statement made by one contracting party (the representor) to another which isn’t true and. Inducement– As a result of the statement the other contracting party (the representee) is encouraged to enter into the contract and relies on the statement.

What does the Misrepresentation Act do?

The Misrepresentation Act exists to protect consumers from false or fraudulent claims that induce you into buying something or entering into a contract. It also allows you to claim damages.

What accounts for misrepresentation in contract law?

An untrue statement of fact or law made by Party A (or its agent) to Party B, which induces Party B to enter a contract with Party A thereby causing Party B loss. An action for misrepresentation can be brought in respect of a misrepresentation of fact or law.

What does S 2 1 of the Misrepresentation Act 1967 provide?

Section 2(1) of the Misrepresentation Act 1967 allows a claimant to claim damages for non-fraudulent misrepresentation, unless the representor can prove they had reasonable grounds for believing the statement to be true.

What are the remedies for misrepresentation?

If a misrepresentation is relied upon in entering a contract, a person can: seek to rescind (cancel) the contract; or. sue for damages to compensate for any loss.

Who has the burden of proof in misrepresentation?

The burden of proof remains the claimant to show reliance on the fraudulent representation. The claimant must show that they understood the statement in the sense (so far as material) which the court attributes to it and having that understanding, relied on it.

When is a misrepresentation found under contract law?

A misrepresentation can be found, despite a party being silent, because of a change in circumstances. This happens when a party makes a statement of fact or law to another party, which when made is true. However, there is a change of circumstances before the other party enters into the contract, which renders the representation false.

How does the Misrepresentation Act protect the consumer?

It protects the consumer from being mis-led or mis-sold goods or services. If you enter into a contract and purchase an item or service because you believed a statement (not an opinion) regarding it, then you can end the contract, get a refund and claim compensation. There are three types of Misrepresentation where a false statement was made:

When to use the Misrepresentation Act of 1967?

This is considered to be when either party enters into a contract having reasonable grounds for believing that his or her false statement was true.  The contract is usually just cancelled in this situation.

What are the remedies under the Misrepresentation Act?

The ACL provides for remedies, such as damages, injunctions, rescission of the contract, and other measures. In England, the common law was codified and amended by the Misrepresentation Act 1967.

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