Fraudulent misrepresentation

• fraudulent misrepresentation (1)

  -> where representor has intentionally lied about a fact or been reckless as to its truth

  • false statement is made : knowingly or deliberately, without belief in its truth, recklessly as to whether its true or false

  Derry v Peek - no fraudulent misrepresentation as the director has applied for permission and expected it to be granted - only careless as to whether what they said was true.
• fraudulent misrepresentation (2)

  • not only a deliberate lie, but if one party fails to tell the whole truth it is a misrepresentation

  Greenridge Luton One v kempton investments - lack of knowledge of arrears made fraudulently/recklessly by seller so buyer could receive damages
• remedies(1)

  rescission - set aside contract

  ->justification is that misrepresentation induced party into contract and if they had known they would not have entered contract

  -> intend to bring party back to pre contract position

  cant rescind if

  1. impossible to restore to pre contractual position - clarke v dickinson
  2. contract affirmed by innocent party - long v lloyd
  3. delay in rescission - leaf v international galleries
  4. 3rd party gained rights over property - lewis v avery
• remedies (2)

  damages - compensation

  -> sue in tort of deceit -> damages even if losses weren't foreseeable

  • entitled to reparation for all losses - doyle v oldbury ironmongers
  • defendant is responsible for all damage and consequential loss where there is a causal link between misrepresentation and damages - smith new courts county v scrimgear vickers
  • loss of profit can be claimed - east v maurer
  • can still affirm contract and insist on continued performance