Misrepresentation … bite size

A misrepresentation is an untrue statement of fact by one party which has induced the other to enter into a contract. Let’s look at the three elements for an actionable misrepresentation in more detail:

1. Untrue statement – this can be spoken, written or by conduct.
2. Of fact – an opinion will not result in an actionable misrepresentation unless:
   1. One party falsely states their opinion; or
   2. The party giving the opinion is stating it as fact and is a position to know the facts.
3. Induced the other to enter a contract – the statement must be at least one of the reasons the innocent party entered into the contract.

Key cases:

Bisset v Wilkinson [1927] AC 177

Smith v Land and House Property Corporation (1884) 28 Ch D 7

Redgrave v Hurd (1881–82) LR 20