Definition of an Actionable Misrepresentation Is a False Statement of Fact. The standard definition of an actionable misrepresentation (as stated in part a), is a false statement of fact, made pre-contractually, which is intended to induce the representee to enter into a contract, and which has that effect.
What are the requirements for an actionable misrepresentation?
The key elements of an actionable misrepresentation are:
- the statement relied on by the representee was a statement of fact made to them by or on behalf of the representor.
- the statement was intended by the representor to induce the representee to enter into the contract.
How do you prove negligent misstatement?
An action for negligent misstatement arises where Party A has carelessly made a statement to Party B, where the relationship between the parties is such that Party A owes Party B a duty of care.
What is classed as false under misrepresentation?
A misrepresentation is a false statement of fact or law which induces the representee to enter a contract. Where a statement made during the course of negotiations is classed as a representation rather than a term an action for misrepresentation may be available where the statement turns out to be untrue.
Who has the burden of proof in misrepresentation?
2(1) Misrepresentation Act 1976). The burden of proof is on the defendant to show that the misrepresentation was not made fraudulently by proving “that he had reasonable ground to believe and did believe up to the time the contract was made the facts represented were true”.
What are the various types of misrepresentation?
Misrepresentation can be categorized as fraudulent, innocent, or negligent misrepresentation.
Can you sue for negligent misstatement?
A negligent misstatement is only actionable in tort if there has been breach of a duty to take care in making the statement that has caused damage to the claimant.
