Misrepresentation

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=110 BGCOLOR="#666699" TEXT="#080000" bgproperties="fixed" background="07d00840erlcjm.gif"> <div> <FONT SIZE="1" COLOR="#FFFFFF" FACE="Arial Narrow" ><B>Easy Law</B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="Easy Law"><U><B>home</B></U></A></div> <div> <A HREF="id30.htm" TARGET="_top" TITLE="Latin"><U>Latin</U></A>   |   <A HREF="id17.htm" TARGET="_top" TITLE="Formation of contract"><U>Formation of contract</U></A>   |   <A HREF="id18.htm" TARGET="_top" TITLE="Validity of contract"><U>Validity of contract</U></A>   |   <A HREF="id19.htm" TARGET="_top" TITLE="Breach of contract"><U>Breach of contract</U></A>   |   <A HREF="id20.htm" TARGET="_top" TITLE="Impossability"><U>Impossability</U></A>   |   <A HREF="id21.htm" TARGET="_top" TITLE="Termination of coract"><U>Termination of coract</U></A>   |   <B>Misrepresentation</B>   |   <A HREF="id24.htm" TARGET="_top" TITLE="Restrictive covenent"><U>Restrictive covenent</U></A>   |   <A HREF="id25.htm" TARGET="_top" TITLE="Exclusion clause"><U>Exclusion clause</U></A>   |   <A HREF="id28.htm" TARGET="_top" TITLE="Sale of goods"><U>Sale of goods</U></A>   |   <A HREF="id29.htm" TARGET="_top" TITLE="Delict"><U>Delict</U></A>   |   <A HREF="id31.htm" TARGET="_top" TITLE="Retention of title "><U>Retention of title </U></A>   |   <A HREF="id32.htm" TARGET="_top" TITLE="Employment law"><U>Employment law</U></A>   |   <A HREF="id33.htm" TARGET="_top" TITLE="Emp. 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Example <I><B>Flynn V Scott 1949 SC 442S </B></I>and also <I><B>Hamilton V Duke of Montrose (1906) 8 F 1026.</B></I></div> <div> <B>Innocent Misrepresentation</B></div> <div> This can occur when one party in a contract has made an inaccurate statement of facts before the contract has been configured resulting in an error to be induced.  If this person honestly believed the statement of facts to be true then this amounts to innocent misrepresentation and not to be fraud.  The statement must have been materially inaccurate; it must have induced an error in the mind of the other party; it must also have led to the contract being formed.  If the error is substantial then the contract will be granted void but if it is not so severe then it will be granted voidable.  However innocent misrepresentation is not a civil wrong it does not rise to an action for damages.</div> <bR> <div> <B>Deliberate Misrepresentation</B></div> <div> This occurs when a party makes a false statement e.g. Knowing it to be untrue; without belief in its truth; recklessly, not caring whether it is true or false.  If the other party because of the statements has entered contract and an error is induced then the contract can become void depending on the severity of the case. Unlike innocent misrepresentation if an error occurs and is found to be deliberate misrepresentation then this is classed as a fraudulent act, which is a civil wrong.  The innocent party may sue for damages and seek to have the contract reduced, or just to sue for damages.</div> <bR> <div> <B>Silence Misrepresentation </B></div> <div> Parties to a contract do so “at arms length” this is where each party looks after their own and discovers any material fact for themselves.  Silence as a general rule does not constitute a misrepresentation.  However there are exceptional situations silence will be regarded as equivalent to misrepresentation.  </div> <div> If the appearance of an item is deceptive to the extent that the item appears to be what it is not. (The very appearance of the item is the misrepresentation)</div> <bR> <bR> <div> If a misleading incomplete statement is not completed, a half-truth amounts to misrepresentation.  </div> <bR> <div> A true representation of fact is made but there is a change in circumstances before a contract is complete.  The person who made the original statement must take steps to correct the false impression; otherwise there will be misinterpretation.</div> <bR> <div> Negligent Misrepresentation </div> <div> This is where damages can be claimed, when a party is under law to not make misleading statement and fails to do so resulting in the formation of a contract. This does not have to be on purpose.</div> <bR> </td> </tr></table></body>