Negligent Misrepresentation in UK Law

Leading Cases
  • Watford Electronics Ltd v Sanderson CFL Ltd
    • Court of Appeal (Civil Division)
    • 23 Feb 2001

    Where both parties to the contract have acknowledged, in the document itself, that they have not relied upon any pre-contract representation, it would be bizarre (unless compelled to do so by the words which they have used) to attribute to them an intention to exclude a liability which they must have thought could never arise.

  • Laws and Others and The Society of Lloyds
    • Court of Appeal (Civil Division)
    • 19 Dec 2003

    That balancing exercise was very much a matter for the judge and, in our view, this court should not interfere with his conclusion unless he erred in principle or was plainly wrong. We should not simply substitute our view for his, even if we would have reached a different conclusion if sitting at first instance.

  • Smith New Court Securities Ltd v Scrimgeour Vickers (Asset Management) Ltd and Another
    • House of Lords
    • 21 Nov 1996

    But in cases where property has been acquired in reliance on a fraudulent misrepresentation there are likely to be many cases where the general rule has to be departed from in order to give adequate compensation for the wrong done to the plaintiff, in particular where the fraud continues to influence the conduct of the plaintiff after the transaction is complete or where the result of the transaction induced by fraud is to lock the plaintiff into continuing to hold the asset acquired. But in cases where property has been acquired in reliance on a fraudulent misrepresentation there are likely to be many cases where the general rule has to be departed from in order to give adequate compensation for the wrong done to the plaintiff, in particular where the fraud continues to influence the conduct of the plaintiff after the transaction is complete or where the result of the transaction induced by fraud is to lock the plaintiff into continuing to hold the asset acquired.

  • 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.

  • HIH Casualty and General Insurance Ltd v Chase Manhattan Bank and Others
    • House of Lords
    • 20 Feb 2003

    But, as the insurers in argument fully recognised, Lord Morton was giving helpful guidance on the proper approach to interpretation and not laying down a code. The passage does not provide a litmus test which, applied to the terms of the contract, yields a certain and predictable result.

  • Hedley Byrne & Company Ltd v Heller & Partners Ltd
    • House of Lords
    • 28 May 1963

    Furthermore, if in a sphere in which a person is so placed that others could reasonably rely upon his judgment or his skill or upon his ability to make careful inquiry, a person takes it upon himself to give information or advice to, or allows his information or advice to be passed on to, another person who, as he knows or should know, will place reliance upon it, then a duty of care will arise.

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Legislation
  • The Consumer Protection (Amendment) Regulations 2014
    • England & Wales
    • January 01, 2014
    ...... 5. In section 2 of the Misrepresentation Act 1967(.  16 ) (damages for misrepresentation), after subsection (3) ...  19 ) (negligent misrepresentation), after subsection (2) insert- . "(3) This section does ......
  • Law Reform (Miscellaneous Provisions) (Scotland) Act 1985
    • UK Non-devolved
    • January 01, 1985
    ......that subsection. S-10 . Negligent misrepresentation. 10 Negligent misrepresentation. . (1) A party to a ......
  • The Land Registration (Network Access) Rules 2008
    • UK Non-devolved
    • January 01, 2008
    ...... (i) the intentional, reckless or negligent misuse of the land registry network by the Subscriber, . (ii) breach of ... (iv) any misrepresentation by the Subscriber as to the Subscriber’s identity, . except to the ......
  • Hackney Carriages, Metropolis Act 1838
    • UK Non-devolved
    • January 01, 1838
    ...... to such Application wilfully or knowingly make any Misrepresentation with the Intention of deceiving the said Registrar, each and every Person ... Offence of any Driver or Conductor for furious or wanton or negligent Driving, or for detaining Property left in any Hackney Carriage, or in any ......
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Books & Journal Articles
  • A Bit of an Ending: The Bre‐X Litigation, Class Actions and the Liability of Professionals
    • Nbr. 7-4, February 2000
    • Journal of Financial Crime
    • 345-347
    The notion of suing professionals — lawyers, brokers, accountants — appears to make good financial sense. It seems fiscally sensible because, while an offender may melt into the night, take up resi...
    ...... Tw o othe r claims , fraudulen t o r negligen t misrepresentation , failed t o satisf y th e second. 5 Journa l of Financia l Crim ......
  • Measures in Misrepresentation: Recent Steps in Awarding Damages
    • Nbr. 55-5, September 1992
    • The Modern Law Review
    ...... courts had only allowed damages for fraudulent misrepresentation in the tort of deceit'; the only remedy for innocent or negligent misrepresentation was rescission of the contract, if it was available, together with a limited payment - an indemnity - in some ......
  • Reports of Committees
    • Nbr. 26-3, May 1963
    • The Modern Law Review
    ...... REFORM OF THE LAW RELATING TO INNOCENT MISREPRESENTATION THE Tenth Report of the Lord Chancellor’s Law Reform ... was made by an agent) was neither fraudulent nor negligent in making the statement. This independent right to ......
  • Australia and Canada: The Role of Policy in Professional Liability
    • Nbr. 9-2, April 2001
    • Journal of Financial Crime
    • 109-116
    The term ‘policy’ as used by the judges is mainly concerned with whether third parties should be allowed to recover economic loss suffered by them as a result of professional negligence. The answer...
    ...... v Touche, 4 a cas e concernin g negligen t misrepresentation , ha d t o addres s th e fundamenta l polic y consideration , whic ... o f liabilit y upo n a publicl y trade d compan y tha t negligentl y misrepresente d it s financia l conditio n t o th e market . ......
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Law Firm Commentaries
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