- Meaning and different classes of misrepresentation
MEANING AND DIFFERENT CLASSES OF MISREPRESENTATION
Misrepresentation in contract law refers to a false statement made by one party to induce the other party to enter into a contract. There are three main types and we have innocent, negligent and fraudulent misrepresentation.
1. Innocent misrepresentation: this occurs when a party unknowingly makes a false statement a provided for under section 2(1) of the UK Misrepresentations Act 1967 relates thereto.
2. Negligent Misrepresentation: this is involving misrepresentations made without reasonable care and the common law principles influenced by cases such as Hedley Byrne & Co Ltd v Heller & Partners Ltd address issues of negligence.
3. Fraudulent Misrepresentation: this involves knowingly making a false statement with intent to deceive and in this class of misrepresentation, common law principles and statutory provisions apply, see section 2(1) of the Misrepresentations Act 1967.
Common cases include:
1. Derry v Peek (1889): this case established test for fraudulent misrepresentation.
2. Howard Marine and Dredging Co Ltd v A Ogden & Sons (Excavations) Ltd (1978): this case clarified the scope of negligent misrepresentation.
However, it is critical to review the laws and recent cases in a specific jurisdiction to gain a comprehensive understanding.
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