Innocent Misrepresentation in UK Law

Leading Cases
  • Spence v Crawford
    • House of Lords
    • 18 May 1939

    Its application is discretionary and where the remedy is applied it must be moulded in accordance with the exigencies of the particular case. The Court will be less ready to pull a transaction to pieces where the defendant is innocent, whereas in the case of fraud the Court will exercise its jurisdiction to the full in order, if possible, to prevent the defendant from enjoying the benefit of his fraud at the expense of the innocent plaintiff.

  • Bentley (Dick) Productions Ltd v Harold Smith (Motors) Ltd
    • Court of Appeal
    • 03 Mar 1965

    Looking at the cases once more, as we have done so often, it seems to me that if a representation is made in the course of dealings for a contract for the very purpose of inducing the other party to act upon it, and actually inducing him to act upon it, by entering into the contract, that is prima facie ground for inferring that it was intended as a warranty. Suffice it that it was intended to be acted upon and was in fact acted on.

  • Long (Peter) & Partners v Burns
    • Court of Appeal
    • 16 Jul 1956

    But, in my judgment, this is not a case where the doctrine of estoppel can be relied upon. The Plaintiffs may say that they wasted some time because they had some dealing with Mrs Pritchard which led to an abortive contract. The Defendant mad no fraudulent misrepresentation to the Plaintiffs, and no sort of suggestion of that kind is or could be made. The Plaintiffs do no suggest that the Defendant gave any warranty to them of the truth of the representation which she made.

  • Sharland v Sharland
    • Supreme Court
    • 14 Oct 2015

    Although not strictly applicable in matrimonial cases, the analogy of the remedies for misrepresentation and non-disclosure in contract may be instructive. At common law, the general effect of any misrepresentation, whether fraudulent, negligent or innocent, or of non-disclosure where there was a duty to disclose, was to render a contract voidable at the instance of a party who had thereby been induced to enter into it.

    As was held in Smith v Kay (1859) VII HLC 749, a party who has practised deception with a view to a particular end, which has been attained by it, cannot be allowed to deny its materiality. Furthermore, the court is in no position to protect the victim from the deception, or to conduct its statutory duties properly, because the court too has been deceived.

  • Armagas Ltd v Mundogas SA (The Ocean Frost)
    • House of Lords
    • 22 May 1986

    They do not exist where such belief, although it is present, has been brought about through misguided reliance on the servant himself, when the servant is not authorised to do what he is purporting to do, when what he is purporting to do is not within the class of acts that an employee in his position is usually authorised to do, and when the employer has done nothing to represent that he is authorised to do it.

  • Car and Universal Finance Company Ltd v Caldwell
    • Court of Appeal
    • 19 Dic 1963

    If he cannot communicate his decision he may still satisfy a judge or jury that he had made a final and irrevocable decision and ended the contract.

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Legislation
  • Misrepresentation Act 1967
    • UK Non-devolved
    • 1 de Enero de 1967
    ... . Misrepresentation Act 19671967 CHAPTER 7. An Act to amend the law relating to innocent misrepresentations and to amend sections 11 and 35 of the Sale of Goods Act 1893. [22nd March 1967]. B. e it enacted. by the Queen's most ......
  • Misrepresentation Act (Northern Ireland) 1967
    • Northern Ireland
    • 1 de Enero de 1967
    ......Misrepresentation Act (Northern Ireland) 1967 1967 CHAPTER 14 An Act to amend the law relating to innocent misrepresentations and to amend sections 11 and 35 of the Sale of Goods Act 1893. [27th June 1967] 1 Removal of certain bars to rescission for ......
  • The Consumer Protection from Unfair Trading Regulations 2008
    • UK Non-devolved
    • 1 de Enero de 2008
    ....... Innocent publication of advertisement defence . 18. - . (1) In any proceedings ...  26 (misrepresentation) shall cease to have effect. . Airports Act 1986 . 32. In section 74 of ......
  • Welfare Reform and Pensions Act 1999
    • UK Non-devolved
    • 1 de Enero de 1999
    ...... · have misrepresented a material fact. (Misrepresentation for this purpose can be wholly innocent.) . Section 68 provides that, ......
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Books & Journal Articles
  • The Rule in Seddon's Case
    • Núm. 26-3, Mayo 1963
    • The Modern Law Review
    ...... of an executed contract on the grounds of innocent misrepresentation. From an examination of these cases, it will ......
  • Reports of Committees
    • Núm. 26-3, Mayo 1963
    • The Modern Law Review
    ...... S. A. DE SMITH. REFORM OF THE LAW RELATING TO INNOCENT MISREPRESENTATION THE Tenth Report of the Lord ......
  • Misrepresentation and Non‐disclosure in Insurance Law — Identical Twins or Separate Issues?
    • Núm. 59-2, Marzo 1996
    • The Modern Law Review
    ...... For example, an innocent misrepresentation, on its true construction, can never be an actionable non-disclosure - one is not held liable for not ......
  • NOTES OF CASES
    • Núm. 21-5, Septiembre 1958
    • The Modern Law Review
    ...... . 550 THE MODERN LAW REVIEW VOL 21 SALE OF GOODS-INNOCENT MISREPRESENTATION-SEDDON’S CASE IN Long v. Lloyd,’ the sale ......
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Law Firm Commentaries
  • The Consequences of Making a Misrepresentation
    • Mondaq United Kingdom
    ...... Misrepresentations can be fraudulent, negligent or innocent. A fraudulent misrepresentation is made when the person making it knows or believes it to be untrue. A negligent misrepresentation is made when the ......
  • Misrepresentation Claims: An Essential Update And Practical Advice
    • Mondaq UK
    ......giving rise to different remedies for the party who has suffered. loss.  Fraudulent misrepresentation; negligent. misrepresentation; and innocent misrepresentation:. Fraudulent misrepresentation is the most. serious and requires the false representation to have been made. knowingly, without ......
  • The Importance Of Being Honest
    • Mondaq United Kingdom
    ...... Failure to correct the replies to enquiries gave rise to an innocent misrepresentation, which, but for inclusion of this condition, would ......
  • The Basics: Negotiating A Contract? Misrepresentation Or Just Exaggeration?
    • Mondaq UK
    ......The test is an objective one. There is no requirement to establish fraud. If the innocent party can prove the statement was in fact false, it will be for the maker of the statement to establish that it reasonably believed in the truth of ......
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