ABSTRACT

The concept of misrepresentation is concerned with pre-contractual statements that induce a contract but turn out to be false. The law relating to misrepresentation is concerned with the situation in which a false statement induces a party to enter into a contract. The remedies available for misrepresentation depend to some extent on the state of mind of the person making the false statement. The principal remedy under English law for a misrepresentation was for a long time the rescission of the ensuing contract. The Misrepresentation Act 1967 introduced a statutory remedy in damages for what is commonly referred to as ‘negligent misrepresentation’. A misrepresentation is a false statement of fact or law made by one contracting party to the other which induces the contract. It can be made by words or actions. Exclusions of liability for misrepresentation will only be effective if they satisfy the requirement of reasonableness under the Unfair Contract Terms Act 1977.