WJEC/Eduqas Law for A level Book 2 Revision Guide

Misrepresentation and economic duress 2. There must be sufficient proximity between the two parties that it is reasonable to rely on the statement. 3. The party to whom the statement is made relies on the statement and the party making the statement is aware of that reliance. Damages are available under the Misrepresentation Act 1967 . The equitable remedy of rescission is also available. Innocent misrepresentation Any misrepresentation not made fraudulently was historically classed as an innocent misrepresentation, regardless of how it was made. Since the emergence of the Hedley Byrne principle and the passing of the Misrepresentation Act 1967 , the only misrepresentations that can be claimed to be made innocently are those where a party makes a statement with an honest belief in its truth. An example is where the party merely repeats inaccurate information, but is unaware that it is untrue. The main remedy for innocent misrepresentation is the equitable remedy of rescission; that is, to void the contract as if it never happened. Damages are also available under s2(1) Misrepresentation Act 1967 . Activity 1.7 Types of misrepresentation What type of misrepresentation is involved in the following examples? 1. Jane is selling her sports car to Anna. Anna asks what capacity the engine is. Jane, after looking at the registration documents, tells her that it is a 1000cc. Jane does not know that the documents are incorrect. Type of misrepresentation: 2. Simon, a carpet salesperson, tells Ayesha that a rug can be cleaned with bleach, without checking the manufacturer’s specification, which states that it cannot. Type of misrepresentation: 3. Emily, who has no qualifications at all, tells prospective employers at an interview that she has a degree in psychology. Type of misrepresentation: 4. Louise recently purchased ‘beefburgers’ from her local supermarket, but later read in the newspaper that the brand actually contained horsemeat. Type of misrepresentation: 21