Misrepresentation

Summary

Before almost all contracts are finalised and formally signed, either or both parties will generally make pre-contract statements or representations which are an important part of the marketing, negotiation and pre-contract assurance stage. If such representations are incorrect this may amount, legally, to misrepresentation. The law of misrepresentation and the legal consequences and options for the wronged party are complex (see below). Our experienced team of litigation specialists can advise and assist you whether you are considering claiming misrepresentation or defending allegations of misrepresentation. Please do get in contact and we will help you assess your legal position and options. In order to satisfy the legal tests and successfully claim misrepresentation there are some key elements which must be satisfied, which are :- * Incorrect factual representation \- before the contract was entered into a factual representation was made which was incorrect. The representation must be factual, not just a sales pitch based on opinion. The representation does not necessarily have to have been made by the other party to the contract. For example, a misrepresentation by an estate.

Key information

• •There must be reliance – to succeed in legally proving a misrepresentation claim, you would need to satisfy the court that if you had known the truth about the representation you would not have entered into the contract
• •There must be loss caused by the misrepresentation \- having entered into the contract you have suffered financial loss.
• •Innocent misrepresentation
• •Negligent misrepresentation \- effectively happens where the person stating the fact(s) has the ability to check and ensure accuracy but instead carelessly and generally without grounds for believing the statement is correct, makes the statement. Legal remedies for negligent misrepresentation are either a claim for damages or the option to potentially cancel the contract (rescission of the contract in legal terminology)
• •Before almost all contracts are finalised and formally signed, either or both parties will generally make pre-contract statements or representations which are an important part of the marketing, negotiation and pre-contract assurance stage. If such representations are incorrect this may amount, legally, to misrepresentation.
• •The law of misrepresentation and the legal consequences and options for the wronged party are complex (see below).
• •Our experienced team of litigation specialists can advise and assist you whether you are considering claiming misrepresentation or defending allegations of misrepresentation. Please do get in contact and we will help you assess your legal position and options.
• •In order to satisfy the legal tests and successfully claim misrepresentation there are some key elements which must be satisfied, which are :-
• •* Incorrect factual representation \- before the contract was entered into a factual representation was made which was incorrect. The representation must be factual, not just a sales pitch based on opinion. The representation does not necessarily have to have been made by the other party to the contract. For example, a misrepresentation by an estate agent retained by a property seller can result in a misrepresentation claim by the property buyer against the property seller - read more on property misrepresentations here.
• •* There must be reliance – to succeed in legally proving a misrepresentation claim, you would need to satisfy the court that if you had known the truth about the representation you would not have entered into the contract
• •* There must be loss caused by the misrepresentation \- having entered into the contract you have suffered financial loss.
• •There is no requirement for the misrepresentation of fact to be in writing, it can be verbal, and may even be implied in some situations, although a claim based on verbal or implied misrepresentation is inherently more risky.

Practical guidance

• •Source: [Misrepresentation](https://www.taylor-rose.co.uk/posts/misrepresentation)

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