ABSTRACT
An actionable misrepresentation is an untrue statement of fact made by one party (usually the seller) to the other party (usually the buyer) before the contract is made, which is one of the reasons the other party enters the contract. (It will be assumed in the text from now on that it is the seller who has made the misrepresentation.)
Types of misrepresentation
Remedies for misrepresentation
Rescission The right to rescission of the contract exists independently of any statute. There are bars, any one of which may prevent rescission being available. The two most significant are: (a) where restitution is impossible, for example, where the buyer has consumed the goods; and (b) where the buyer has delayed for more than a reasonable length of time before rescinding the contract. In the case of a fraudulent representation, the reasonable length of time does not start until the buyer has become aware of the misrepresentation. In the case, however, of innocent misrepresentation (negligent or not) time begins to run when the contract is made (Leaf v International Galleries (1950)). By virtue of s 2(2) of the Misrepresentation Act 1967, the court has the discretion to refuse to grant rescission and to award damages instead.
