Negligent misrepresentation

• what case started negligent misrepresentation?

  Hedley Bryne v Heller
• what is negligent misrepresentation?

  a false statement made by a person who had no reasonable grounds for believing it to be true. It is not a deliberate lie but there is nothing to suggest the maker of the statement believed it was true.
• What are the two types of misrepresentation?

  Common law negligence misrepresentation, negligent misrepresentation under the misrepresentation act 1967
• what did the case of Hedley Byrne v Heller decide in terms of negligent misrepresentation?

  it was decided in the case of Hedley Byrne v Heller that a misrepresentation can be made based on negligence where the D owes a duty of care towards the C and fails in that duty by making the false statement. The D will only owe a duty of care to C if there is a special relationship between them
• What is the significance of section 2(1) of the misrepresentation act 1967?

  Section 2(1) of the Misrepresentation Act 1967 creates statutory liability for negligent statements without the need to prove a special relationship between the parties. All that is neededis that there was a misrepresentation that caused loss to C.
• What is the benefit of section 2(1) of the Misrepresentation Act 1967?

  The approach made by section 2(1) of the misrepresentation act makes it easier to establish a special connection between the parties; it is appropriate if C cannot establish fraud on D’s part. Once the C has established misrepresentation the burden of proof to prove there were reasonable grounds to believe it was true is moved to the D
• Describe the remedies for negligent misrepresention ?

  Availability of rescission is the same as it is under innocent misrepresentation. Damages are calculated using the same method as that under the tort of negligence. This also means that damages can be reduced if there is contributory negligence.