misrepresentation

• Fraudulent misrepresentation involves making false statements with knowledge that they were not true or recklessly disregarding their truthfulness. remedy- damages claimed for losses
• There are three types of misrepresentations: fraudulent, negligent, and innocent.
• Misrepresentation is an untrue statement made by one party to another, which induces the other party into entering into a contract.
• Negligent misrepresentation occurs when the maker of the statement did not know it was untrue but failed to take reasonable care to ensure its accuracy, resulting in loss suffered by the recipient.

  remedy- recission
• false statements can be written/ spoken
• innocent misrep: error or technical oversight remedy- recission
• false statement: fletcher V Krell- no misrep when governess didn't disclose her martial status as she wasn't asked about it
• spice girls V Aprilla (false statement): filming the tv ad was a false statement by conduct due to failing to mention a member leaving the group, its rare for silence to be misrep but there are exceptions
• changing circumstances: true statement becomes false before contract made there is a duty to disclose
• changing circumstances: with V O'flanagan- an estimate of GP's income fell from £2000 to less D was under duty to disclose this before contract was agreed
• half truths- a false statement includes one which is misleading even if there is some truth to it
• half truths- Dimmock V Hallet- seller told buyer that a farm would be sold with tenants but failed to mention that tenants had given notice to leave
• Misrepresentation in contracts can occur through error and mistake, leading to the contract being invalid due to lack of genuine consent
• Misrepresentation involves an untrue statement of fact that induces a party to enter the contract, which can be made through written, spoken, or conduct statements
• Half-truths, where only positive information is shared, can still be misleading if crucial negative details are omitted
• Changing circumstances that affect the contract should be disclosed before or at the time of the contract being formed
• Statements of fact in misrepresentation must be verifiable truths, not opinions or beliefs, as they can be crucial in determining the validity of a contract
• Expert opinions are more likely to be considered as facts due to the expertise and skills of the individual providing the opinion
• Different types of misrepresentation include fraudulent (most serious), negligent, and innocent (least serious), each leading to varying levels of compensation and remedies
• Remedies for misrepresentation in contracts can include rescission, where the item is returned, and the party receives a full refund, but the right to rescission may be lost under certain circumstances
• Fraudulent misrepresentation is rare in practice and requires proof of intentional deception, while negligent misrepresentation is more common and involves a lack of reasonable care in verifying the accuracy of statements
• Innocent misrepresentation, the least serious type, results from errors or oversights and may lead to rescission or compensation, but the compensation amount is typically lower
• Key considerations in misrepresentation cases include determining the type of misrepresentation, whether the statement was a fact or opinion, and if the misrepresentation was the reason for entering the contract