ABSTRACT
The first of these requires knowledge of the rules by which the courts decide whether a particular statement made during negotiations is to be regarded as part of any subsequent contract, and the use of the collateral contract. If a statement is not part of the main contract or a collateral contract, then the possibility of an action for misrepresentation should be considered. This requires looking at:
• the requirements for a statement to be regarded as a ‘misrepresentation’; and • possible remedies under the common law and the Misrepresentation Act 1967.
Sometimes, a contract question will call for discussion of liability for negligent misstatements under Hedley Byrne v Heller (1964). This complicated topic, however, is more appropriately dealt with in tort, and there is no detailed discussion of it in any of the suggested answers in this chapter. Note also that there is further discussion of the law relating to misrepresentations in Chapter 7.
