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Remedies For Misrepresentation Notes

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Remedies for Misrepresentation Damages for consequential losses

Fraudulent Misrepresentation (Tort of Deceit) o Derry v Peak [1889]:
? Requires C to prove D made a false statement


Without belief in its truth (or recognition of ignorance re: truth)

Recklessly, careless whether it is true or false o Chen Wishart: is very hard to prove deceit - but Misrepresentation Act 1967 s.2(1) helps out!

Negligent Misrepresentation (Tort of Negligence) o SEE TORT NOTES re: Hedley Byrne v Heller [1964]

Negligent and Innocent Misrepresentation (C can automatically claim damages as if for fraud unless D proves was not fraudulent) o Misrepresentation Act 1967 s.2(1)
? When C has entered contract under misrepresentation by D and suffered loss

If D would be liable for damages if the misrepresentation had been made fraudulently, o D shall be so liable notwithstanding that statement was not fraudulent unless he proves that:
? he had honestly and reasonably believed up to the time the contract was made

that the facts represented were true.
? Howard Marine v Ogden [1964]: C's agent non-fraudulently represented to D that barges could carry 1600 tonnes, when could only carry 1005 tonnes. D counter- claimed against C for misrepresentation.

Bridge LJ (maj): o Although D has not proved fraud
? Under Misrepresentation Act 1967 s.2(1) Unless C can show that had reasonable ground for belief

Then C will still be liable o In this case, C cannot prove he had a reasonable ground to believe in the greater capacity.Royscot v Rogerson [1991]: D misrepresented terms of hire-purchase of R to C, finance company, who wouldn't have taken it on had known of misrepresentation. However, R wrongfully disposed of car and defaulted anyway. C sued, D argued car being wrongfully disposed not foreseeable from misrepresentation.

Balcombe LJ: o Non Fraudulent misrepresentation gives the tortious reliance damages
? That is, putting X in the position as if he had not entered the contract

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