ABSTRACT
The concept of misrepresentation is concerned with pre-contractual statements, which induce a contract, but turn out to be false. There are other remedies for some false statements of this kind, such as collateral contracts, but a claimant will often wish to rely on the remedies for misrepresentation. The following issues are important in deciding if a remedy is available on this basis:
■ Defi nition. A misrepresentation must be made by one party to the other; a statement of existing fact or law; generally in the form of a positive statement, rather than silence. There
are, however, a number of exceptions to this principle – for example, when
circumstances change between the making of the statement and the making of the contract;
something which in part, at least, induces the other party to make the contract. ■ Remedies for misrepresentation
Rescission of the contract. This is the main remedy which is available for all types of misrepresentation, even if wholly innocent. Certain bars, such as lapse of time, or the intervention of third party rights, will prevent rescission being available.
