Misrepresentation and economic duress

• Misrepresentation


  An untrue or false statement of law or fact made by one party, which induces the other party to enter into an agreement or contract
• Fraudulent misrepresentation


  A false statement which the person making it does not believe to be true at the time
• Fraudulent misrepresentation- case example:


  • Derry v Peek
• Negligent misrepresentation- case example:


  • Thomas Witter Ltd v TBP Industries Ltd
• Damages


  Award to put the party back as they were
• Rescission


  To unmake a contract or transaction, to return the parties to the position they would be in if it had never happened
• Fraudulent misrepresentation


  Damages awarded according to the tort of deceit, also available under Misrepresentation Act 1967. Rescission also available.
• Negligent misrepresentation


  Damages applied according to the standard tort measure of negligence or under s2(1) Misrepresentation Act 1967. Rescission also available.
• Innocent misrepresentation


  A misrepresentation not made fraudulently, where a party makes a statement with an honest belief in its truth
• Misrepresentation Act 1967 s2(1)


  helps protect people who enter into contracts after being misled by false information. Someone who made a false statement (misrepresentation) to influence someone else's decision is liable for any resulting losses or damages, unless they had good reasons to believe the statement was true and can prove it.
• Misrepresentation Act 1967 s2(2)


  The judge has the discretion which remedy to apply (rescission or damages)
• Economic duress


  A contract may be set aside because extreme coercion has rendered the contract otherwise commercially unviable
• Economic duress


  • Five conditions need to be satisfied