Misrepresentation

This law lecture looks at an actionable Misrepresentation in Contract Law.  An actionable misrepresentation i.e. a misrepresentation that is capable of founding a court action for misrepresentation, must consist of certain elements which are discussed in detail below. If one of these elements is missing, the misrepresentation will not be actionable and there will be no remedy available for misrepresentation. A Misrepresentation is a unambiguous, false, statement of fact (or law), addressed to the party misled, which is material and induces the contract, and causes loss.

Learning Outcomes

At the end of this lecture you will be able to do the following:

1. understand the nature of misrepresentation;

2. identify the elements of a misrepresentation;

3. assess whether a misrepresentation is actionable;

4. identify the various types of misrepresentation both at common law and under statute;

5. understand the remedies available dependent on the type of misrepresentation in question.

Cases

Ambiguous statement

McInerny v Lloyds Bank Ltd [1974] 1 Lloyd's Rep 246(CA)

Statement of Fact

Esso Petroleum Co Ltd v Mardon[1976] 2 All ER 5

Statement of Law

Pankhania v Hackney LBC [2002] NPC 123

Chapelton v Barry UDC [1940] 1 All ER 356, CA

Silence

Dimmock v Hallett [1866] LR 2 Ch App 21

Ongoing Silence

With v O’Flanagan[1936] Ch 575

Contracts of Utmost Good Faith

Tate v Williamson (1866) LR 2 Ch App 55

Reliance

Horsefall v Thomas [1862] 1 H & C 90

Fraudulent Misrepresentation

Derry v Peek [1889] 14 App Cas 337

Negligent Misrepresentation

Hedley Byrne v Heller & Partners (1964) AC 465

Innocent Misrepresentation

Redgrave v Hurd (1881) 20 Ch D 1

Rescission

Long v Lloyd [1958] 1 WLR 753

Damages

s.2(1) Misrepresentation Act 1967

East v Maurer [1991] 2 All ER 733

Remoteness of Damages

Smith New Court Securities Ltd v Scrimgeour Vickers (Asset Management) Ltd.[1996] 4 All ER 769