Misrepresentation in Law
CHAPTER EIGHT
MISREPRESENTATION
A misrepresentation is an untrue statement, which induces the other party to enter into the contract. A misrepresentation may be fraudulent, negligent misstatement, or wholly innocent. The applicable remedy depends on the nature of the misrepresentation. In order for a representation to amount to an actionable misrepresentation it must be: a) false; b) one of fact as oppose to intention, opinion, or law; c) The statement must be addressed to the party who claims to have been misled; d) it must be the chief reason which induced the other party to enter the contract.
If the representation that is being challenged satisfies these four requirements, then it is an actionable representation.
Statement of Fact or Opinion
A statement which is made to the other party that is false and induces him to enter into the contract, this is an actionable misrepresentation. The false statement must be one of fact and not of law because no one can misrepresent the law since everyone is presumed to know the law. A statement of opinion is not actionable per se as a misrepresentation because it is not a statement of fact. In Bisset v. Wilkinson, the respondent purchased from the appellant, two plots of land in New Zealand for the purpose of sheep farming. During the negotiations, the appellant told the respondent that, if the place was worked properly, it would carry two thousand sheep. The respondent, it was admitted, bought the place believing that it would carry two thousand sheep. As both parties were aware, the appellant had not and, so far as appeared, no other person had at anytime carried on sheep farming on the land. In an action for rescission for misrepresentation, Sim J. said:
In ordinary circumstances, any statement made by any owner who has been occupying his own farm, as to its carrying capacity would be regarded as a statement of fact…. This, however, is not such a case … in these circumstances. The plaintiff
MISREPRESENTATION
A misrepresentation is an untrue statement, which induces the other party to enter into the contract. A misrepresentation may be fraudulent, negligent misstatement, or wholly innocent. The applicable remedy depends on the nature of the misrepresentation. In order for a representation to amount to an actionable misrepresentation it must be: a) false; b) one of fact as oppose to intention, opinion, or law; c) The statement must be addressed to the party who claims to have been misled; d) it must be the chief reason which induced the other party to enter the contract.
If the representation that is being challenged satisfies these four requirements, then it is an actionable representation.
Statement of Fact or Opinion
A statement which is made to the other party that is false and induces him to enter into the contract, this is an actionable misrepresentation. The false statement must be one of fact and not of law because no one can misrepresent the law since everyone is presumed to know the law. A statement of opinion is not actionable per se as a misrepresentation because it is not a statement of fact. In Bisset v. Wilkinson, the respondent purchased from the appellant, two plots of land in New Zealand for the purpose of sheep farming. During the negotiations, the appellant told the respondent that, if the place was worked properly, it would carry two thousand sheep. The respondent, it was admitted, bought the place believing that it would carry two thousand sheep. As both parties were aware, the appellant had not and, so far as appeared, no other person had at anytime carried on sheep farming on the land. In an action for rescission for misrepresentation, Sim J. said:
In ordinary circumstances, any statement made by any owner who has been occupying his own farm, as to its carrying capacity would be regarded as a statement of fact…. This, however, is not such a case … in these circumstances. The plaintiff