What Is Misrepresentation Law?

How does misrepresentation differ from a breach of contract?

Because of the written agreement, the misrepresentation may also be a condition of the contract and, in this case, the claimant may elect to claim for breach of contract and damages, as an alternative to a claim for misrepresentation.

In certain instances, it can be simpler to provide evidence of breach of contract..

Can you go to jail for misrepresentation?

The false statement can be made in oral evidence or in writing. In New South Wales, perjury is governed by Section 327 of the Crimes Act and carries a maximum penalty of 10 years imprisonment. If the false statement is made in order to bring about a conviction or an acquittal, the maximum penalty is 14 years.

What do you mean by misrepresentation?

Definition: Getting into a contract with a person or a company on false grounds by making statements that are not in accordance with the facts is known as misrepresentation.

What is misrepresentation in contract law?

In contract law, a misrepresentation is a statement made by one contracting party to another which is not true, and which encourages the other contracting party to enter into the contract, as a result of which he suffers loss.

What are some examples of misrepresentation?

In a fraudulent misrepresentation, a party makes a false claim regarding a contract or transaction but knows it isn’t true. For example, if a person is selling a car and knows there is a problem with the transmission, yet advertises it in perfect mechanical condition, they have committed fraudulent misrepresentation.

How do you stop misrepresentation?

Misrepresentation What Is It and How to Avoid It When Selling a BusinessWork with an experienced broker. … Don’t try to hide major flaws. … Be as transparent as possible with the books. … Have a lawyer look over your listings and agreements.More items…

How do you prove negligent misrepresentation?

How to Prove Negligent Misrepresentation?The defendant made a statement of fact while trying to induce the plaintiff to enter into a contract or a business transaction;The statement of fact was false and the defendant did not exercise reasonable care and was careless when acquiring and communicating the information;More items…•

What are the 3 types of misrepresentation?

Misrepresentation applies only to statements of fact, not to opinions or predictions. There are three types of misrepresentations—innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation—all of which have varying remedies.

Is misrepresentation a breach of contract?

A misrepresentation is an untrue statement of fact made by one party to the other, which induces and misleads that party to enter into a contract. Misrepresentation must be of fact, not of opinion or intention. … If the statement is untrue, it will amount to a breach of contract.

What is another word for misrepresentation?

In this page you can discover 64 synonyms, antonyms, idiomatic expressions, and related words for misrepresentation, like: counterfeit, simulation, canard, untruth, mask, cloak, deceit, dissembling, disguise, misstatement and distortion.

What are the two types of misrepresentation?

The two types of misrepresentation are fraudulent and nonfraudulent.

What are the requirements of misrepresentation?

THE MISREPRESENTATION MUST HAVE INDUCED THE CONTRACT The false statement must have induced the representee to enter into the contract. The requirements here are that (a) the misrepresentation must be material and (b) it must have been relied on.

What are the remedies for misrepresentation?

The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages.

How are damages for misrepresentation calculated?

In the case of a misrepresentation which is held to constitute a breach of contract, prima facie the measure of damages is the difference between the value of what the representee received and what he would have received if the representation had been true.

Is misrepresentation a criminal Offence?

A single act of fraud can be prosecuted as a criminal fraud by prosecutors, and also as a civil action by the party that was the victim of the misrepresentation. … Misrepresentation of a material fact. Knowledge on the part of the accused that they were misrepresenting the fact.

What are the remedies for innocent misrepresentation?

2(2) Misrepresentation Act 1967 the remedies for an innocent misrep are rescission or damages in lieu of rescission. The claimant cannot claim both. Damages are assessed on normal contractual principles.

Is misrepresentation a lie?

A misrepresentation is when you misrepresent, or lie about, something that happened. … A misrepresentation is a misstatement of the facts. It’s more than casting a different light on something; it’s deceptive and untrue.