Misrepresentation is an untrue statement of fact or law that influences another party to enter a contract and that results in loss. However, to pursue a misrepresentation claim, the claimant must show that they relied upon the untrue statement when making the decision to enter the contract and that the misrepresentation resulted in loss or damage to the claimant.
There are three types of misrepresentation:
Fraudulent misrepresentation: This is possibly the most serious and is where a false representation has been made knowingly, or without belief in its truth, or recklessly as to its truth with the purpose of persuading the other party to enter that contract.
Negligent misrepresentation: If reasonable care to ensure the truth of a statement is not taken, or where a statement is made carelessly or without sufficient reason for believing in the statement’s truth, a claimant maybe entitled to bring a claim of negligent misrepresentation.
Innocent misrepresentation: a representation that is neither fraudulent nor negligent and arises where a party has been induced into a contract but the party who made the misrepresentation did so under the belief it was true at the time the representation was made.
What are the remedies of misrepresentation?
For claims involving fraudulent and negligent misrepresentation, the wronged party may be able to claim both damages and a termination of a contract to put the parties in the position they would have been had the contract not been entered into. In certain circumstances and particularly involving fraud, directors of companies can be held personally liable for misrepresentation notwithstanding that such action may have been done on behalf of the company.
A claimant involved in innocent misrepresentation can pursue damages in lieu of rescission but cannot claim rescission.
Again, the claimant must be able to show that they suffered a loss because of the misrepresentation to pursue any form of damages or rescission. This is a complex area of law and it is important that you seek professional legal advice to assess the strength of your claim and the various legal options available to you.
Read more about how to protect your business and 11 Facts You Need to Know About Misrepresentation.
Speak to an experienced litigation solicitor today
At Lincoln & Rowe, we support clients who have been sued for fraudulent misrepresentation as well as clients who believe they have been entered into a contract under false premise. If you are concerned about any of the matters mentioned above, get in touch with a member of the team who can help with your case.
Make an online enquiry, send an email to firstname.lastname@example.org or call us on +44 (0)20 3968 6030.
Who we can help
Our commercial litigation lawyers at Lincoln & Rowe possess significant depth and breadth of dispute resolution expertise gained from years of experience advising on high-value and complex litigation. We act for individuals, owner managed enterprises, national and international businesses based in the UK and abroad in a range of jurisdictions. We advise both claimants and defendants.
Where can you find us?
Lincoln & Rowe Solicitors are based in the heart of London and just a few minutes’ walk from the Royal Courts of Justice. Our full address is 81 Chancery Lane, London WC2A 1DD.