Categories of Misrepresentation

Question 1

What are the 3 categories of misrepresentation?

Answer 1

1) Fraudulent (tort of deceit)

2) Negligent (statutory claim under s 2(1) of the MA 1967)

3) Innocent (also a statutory claim under s 2(1) of the MA 1967)

Question 2

Fraud is proved when it is shown that the false rep has been made…

Answer 2

(a) knowingly, or

(b) without belief in its truth, or

(c) recklessly, careless whether it be true or false
- level of recklessness req = a ‘flagrant disregard for the truth’.

Question 3

How readily do the courts use the word fraud?

Answer 3

Not very

Question 4

Who has the burden of proof in proving fraud misrep?

Answer 4

on the claimant = difficult burden to discharge. difficult to persuade court

Question 5

D will be liable for negligent misrepresentation unless they can prove that they…

Answer 5

had reasonable grounds to believe, and did believe up to the time the contract was made, that the statement was true.

Question 6

If a representor is found liable for a negligent misrepresentation, how will they be treated?

Answer 6

as if he had made a fraudulent misrepresentation. This has important ramifications as regards damages.

Question 7

What needs to be shown for proving if a representor made a rep recklessly?

Answer 7

‘objectively reasonable ground’ for saying what they did.