Misrepresentation—damages as a remedy


Published by a ³ÉÈËÓ°Òô Dispute Resolution expert
Practice notes

Misrepresentation—damages as a remedy


Published by a ³ÉÈËÓ°Òô Dispute Resolution expert

Practice notes
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This Practice Note considers when damages are available as a remedy for a misrepresentation claim with reference to the Misrepresentation Act 1967 (MA 1967).

For consideration of when the courts will rescind a contract for misrepresentation and when parties can validly exclude or limit liability for misrepresentation, see Practice Notes:

  1. •

    Misrepresentation—rescission as a remedy

  2. •

    Misrepresentations—excluding and limiting liability for them

When can you claim damages as a remedy for misrepresentation?

MA 1967 provides a statutory basis for the recovery of damages in cases of misrepresentation under MA 1967, s 2 in addition to the common law action for damages for fraudulent misrepresentation or the closely related tort of deceit.

Thus the position now is that if the representee suffered loss as a result of having been induced to enter into the contract by the misrepresentation, they may have a claim for damages in the following circumstances:

  1. •

    where the misrepresentation was fraudulent (already available at common law)

  2. •

    where the misrepresentation was not fraudulent, but the representor is unable to show that they had reasonable grounds

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Misrepresentation definition
What does Misrepresentation mean?

A misrepresentation is a pre-contractual false statement of fact or law made by one party to a contract (or his agent) to the other that induced that party to enter into the contract.

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