Misrepresentation

At Alkers Solicitors we can assist with claims for misrepresentation where one party enters into a contract having relied upon a false representation made by another party.

We can advise you of your options which will be dependent upon whether the false statement was made fraudulently, negligently or innocently.

Fraudulent Misrepresentation

A fraudulent misrepresentation is a statement of fact made without belief in its truth either recklessly, knowingly or without caring whether it is true or false with the intention that it should be acted on and it is in fact acted upon. Where a contract has been entered into as a result of fraudulent misrepresentation, the ‘victim’ may cancel the contract, claim damages or both. The Misrepresentation Act 1967 allows a claimant to base their claim on negligence or on the fraud. In addition, when a misrepresentation claim is based on negligence, the Act states that it is the defendant who has to disprove negligence. In other words, that they had reasonable grounds to believe the statement and they did believe that the facts represented were true.

Negligent Misrepresentation

A negligent misrepresentation may fall under the common law or under the Misrepresentation Act 1967. Financial loss may be recovered in some circumstances. Innocent misrepresentations are made where the maker of the statement has reasonable grounds for believing in its truth and a negligent misrepresentation cannot be fraudulent, provided the defendant had an honest belief in the truth of the statement made.

Fraudulent and negligent misrepresentations entitle the claimant to an award of damages or to have the contract cancelled.

Innocent Misrepresentation

Where one of the parties, when entering into a contract, had reasonable grounds for believing that his or her false statement was true. This type of representation primarily allows for the contract to be cancelled, the purpose of which is to put the parties back into a position as if the contract had never taken place. However, Section 2(2) Misrepresentation Act 1967, allows for damages to be awarded in lieu of the cancelled contract, if the court deems it appropriate. This is judged on both the nature of the innocent misrepresentation and the losses suffered by the claimant from it.

If you would like legal advice on making a claim for misrepresentation then contact the team here at Alkers Solicitors today and one of our specialist solicitors will be happy to advise you regarding this.

For more information about how we can help with misrepresentation issues, contact us on freephone 0800 00 55 44, or via the enquiry form.