Misrepresentation

Question 1

What is fraudulent misrepresentation?

Answer 1

Representee must prove that the representor made a false representation either knowingly, without belief in its truth, or recklessly with flagrant disregard for the truth. The motive of the person making the statement is immaterial.

Question 2

What is a negligent misrepresentation?

Answer 2

Representor fails to show that they had reasonable grounds to believe the statement was true and did believe that it was true until the contract was made.

Question 3

What is an innocent misrepresentation?

Answer 3

Representor has shown reasonable grounds for belief in the truth of their statement and proves that they believed it was true.

Question 4

What remedies are available for fraudulent misrepresentations?

Answer 4

Rescission (voidable not void), indemnity or damages.

Question 5

What remedies are available for negligent misrepresentation?

Answer 5

Rescission, damages (on tort of deceit basis) or indemnity.

Question 6

What remedies are available for innocent misrepresentation?

Answer 6

Rescission, indemnity. Not damages, though could be awarded in lieu of rescission.