The Pros And Cons Of Misrepresentation

Satisfactory Essays
A misrepresentation is a false statement of fact made by one party to a contract to the other party before the contract was made and which was one of the factors which induced the other party to enter the contract. The burden of proof is on BSHC to prove that all the above has been satisfied. WildeJames have indeed made a false statement as they have not actually carried out the survey and have therefore advised BSHC of facts which are untrue. It doesn’t appear that the statement was one of opinion and as WildeJames are experts as the maker of the statement they are in the best position to know the facts (Smith v Land and House Property Corporation). The state ment must have been one of the factors why BSHC entered the contract and doesn’t need to be the only reason Ediginton v Fitzmaurice.
Under the Misrepresentation Act 1967 s 2(1) BSHC may be able to claim damages for negligent misrepresentation. All BSHC will need to do is to establish that there was a misrepresentation and that they have suffered loss. WildeJames will have a difficult task of disproving that BSHC had reasonabl...
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