CONTRACT LAW REVIEW NOTES
MISREPRESENTATION
Misrepresentation occurs when one party makes a false statement of
fact which induces the other party to enter into a contract.
The false statement can be made knowingly, recklessly, or negligently.
Types of Misrepresentation:
1. Innocent Misrepresentation
- Occurs when the party making the false statement believed it to be
true at the time.
Example: A seller mistakenly states that a painting is an original when it
is actually a copy.
2. Negligent Misrepresentation
- Occurs when the party making the false statement did not take
reasonable care in verifying its accuracy.
Example: A real estate agent incorrectly states that a property has
planning permission when it does not.
3. Fraudulent Misrepresentation
- Occurs when the party making the false statement knows it to be false
or makes it with reckless disregard for its truth.
MISREPRESENTATION
Misrepresentation occurs when one party makes a false statement of
fact which induces the other party to enter into a contract.
The false statement can be made knowingly, recklessly, or negligently.
Types of Misrepresentation:
1. Innocent Misrepresentation
- Occurs when the party making the false statement believed it to be
true at the time.
Example: A seller mistakenly states that a painting is an original when it
is actually a copy.
2. Negligent Misrepresentation
- Occurs when the party making the false statement did not take
reasonable care in verifying its accuracy.
Example: A real estate agent incorrectly states that a property has
planning permission when it does not.
3. Fraudulent Misrepresentation
- Occurs when the party making the false statement knows it to be false
or makes it with reckless disregard for its truth.
