Essay on West 's Encyclopedia Of American Law

Essay on West 's Encyclopedia Of American Law

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West 's Encyclopedia of American Law ( n.d) explained that representation is any action or conduct that can be turned into a statement of fact. Whiles, a misrepresentation is a false statement of fact made by one party to another. It has already been noted that the law makes a distinction between terms of the contracts and mere representations. Statements made prior to the formulation of a contract, while they may not be considered important enough to be classified as terms, will nevertheless have some bearing on whether or not the contract is concluded and, possibly, what form that contract takes. The courts developed the concept of misrepresentation, originally insofar as common law was prepared to give a remedy (for tort of deceit) only where the misrepresentation was fraudulent. Equity, on the other hand, proceeded by developing the remedy of rescission for both fraudulent and innocent misrepresentation. For an untrue statement to constitute an actionable misrepresentation it must have the following characteristics.
i) The misrepresentation must be of fact or of law. An expression of opinion or belief incapable of actual proof, cannot be actionable. However, particular belief or opinion may amount to a misrepresentation, if it is a question of record that can be proved or disproved.
ii) Misrepresentation must have induced the contract. Reliance on the statement is obviously not present where the party to whom it was addressed was ignorant of the statement’s existence. Nor could the misrepresentation be said to have induced the contract if the party to whom it was addressed, despite being aware of it, formed his own judgement as to the matter.
iii) Lastly, false statement of fact or law must have been addressed to the person ...

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...may have excluded the statements but you can’t exclude your presence in an investigation to benefit yourself. House of Lords stated, if the representee carries out his own investigations, then he does not rely on the representation. If my client, did make a misrepresentation, it would be a wholly innocent one. A wholly innocent statement is a false statement which the person makes honestly believing it to be true. At common law, the only remedy available to a person induced into entering a contract by an innocent misrepresentation (which was not a term of the contract) was rescission of the contract. Because rescission requires that parties be restored to their pre-contract positions, this remedy may be lost if the contract has been performed. Generally, the plaintiff (Brian) have no right to damages for any loss suffered as a result of an innocent misrepresentation.

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