Misrepresentation

The leading authorities to know, and how the doctrine developed over time. A pre-contractual statement of fact (or, exceptionally, opinion or intention) made by one party that induces the other to enter the contract and turns out to be untrue may give rise to rescission and damages, measured by reference to whether the misrepresentation was fraudulent, negligent, or innocent.

Leading cases

  1. Smith v Land and House Property Corp (1884) (1884) 28 Ch D 7, Court of Appeal.

    An opinion can amount to a representation of fact where the speaker is in a better position to know the true position.

  2. Edgington v Fitzmaurice (1885) (1885) 29 Ch D 459, Court of Appeal.

    A statement of present intention can be a misrepresentation, the state of a person's mind is itself a fact.

  3. Derry v Peek (1889) (1889) 14 App Cas 337, House of Lords.

    Defined fraudulent misrepresentation, knowledge of falsity, recklessness, or absence of belief in truth.

  4. Royscot Trust Ltd v Rogerson (1991) [1991] 2 QB 297, Court of Appeal.

    Damages under s2(1) Misrepresentation Act 1967 are assessed on the tort-of-deceit measure, wide reach for negligent misrepresentation claims.

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  • Duty of care (negligence)
  • Negligent misstatement (pure economic loss)
  • Consideration
  • Mens rea, intention and recklessness
  • Judicial review, grounds of review
  • Frustration of contract
  • Promissory estoppel