Types of Misrepresentation

• Fraudulent misrepresentation - where the maker knowingly lies (Derry)
• Fraudulent remedies include

  • recission
  • damages under Misrepresentation Act and the tort of deciet
  • covering of all consequential losses (Greenridge Luton One)
• Negligent misrepresentation- where the maker had no reasonable grounds to believe the statement was true
• Negligent - once the misrepresentation is proven, it is up to the maker to prove reasonable grounds (Howard Marine)
• Negligent remedies include

  • recission
  • damages, calculated as in fraud (East)
• Innocent misrepresentation- where the statement was made honeslty with reasonable grounds for belief in its truth
• Innocent remedies include

  Rescission, unless:

  • impossible (Clarke)
  • the contract was affirmed (Long)
  • there was delay (Leaf)
  • or third-party rights intervene (Lewis)

  Damages instead of recission if it is more equitable (Sindall)