Misrepresentations

Question 1

Misrepresentation

Answer 1

Untrue statement of fact that induces a party to enter into a contract

Question 2

What does the claimant must show to pursue a claim of misrepresentation?

Answer 2

They relied on the untrue fact when deciding to enter the contract, the misrepresentation led to damages (loss or injury) to the claimant.

Question 3

3 types of misrepresentation

Answer 3

Fraudulent, Negligent, Innocent

Question 4

Fraudulent misrepresentation

Answer 4

When a party to a contract knowingly makes an untrue statement of fact which induces the other party to enter into the contract. Claimant can both claim rescission and damages.

Question 5

Negligent misrepresentation

Answer 5

When a party to a contract carelessly states a fact, while having no reasonable reasons to believe it to be true. Claimant can both claim rescission and damages.

Question 6

Innocent representation

Answer 6

When someone had reasonable grounds to believe that their representation was true. Claimant and only claim damages.