Misrepresentation Act 1967

JurisdictionUK Non-devolved
Citation1967 c. 7
(a) the misrepresentation has become a term of the contract; or(b) the contract has been performed;(1) Where a person has entered into a contract after a misrepresentation has been made to him by another party thereto and as a result thereof he has suffered loss, then, if the person making the misrepresentation would be liable to damages in respect thereof had the misrepresentation been made fraudulently, that person shall be so liable notwithstanding that the misrepresentation was not made fraudulently, unless he proves that he had reasonable ground to believe and did believe up to the time the contract was made the facts represented were true.(2) Where a person has entered into a contract after a misrepresentation has been made to him otherwise than fraudulently, and he would be entitled, by reason of the misrepresentation, to rescind the contract, then, if it is claimed, in any proceedings arising out of the contract, that the contract ought to be or has been rescinded, the court or arbitrator may declare the contract subsisting and award damages in lieu of rescission, if of opinion that it would be equitable to do so, having regard to the nature of the misrepresentation and the loss that would be caused by it if the contract were upheld, as well as to the loss that rescission would cause to the other party.(3) Damages may be awarded against a person under subsection (2) of this section whether or not he is liable to damages under subsection (1) thereof, but where he is so liable any award under the said subsection (2) shall be taken into account in assessing his liability under the said subsection (1) .(4) (5) Subsection (4) does not prevent a debtor from bringing a claim under section 75(1) of the Consumer Credit Act 1974 against a creditor under a debtor-creditor-supplier agreement in a case where, but for subsection (4) , the debtor would have a claim against the supplier in respect of a misrepresentation (and, where section 75 of that Act would otherwise apply, it accordingly applies as if the debtor had a claim against the supplier) .any liability to which a party to a contract may be subject by reason of any misrepresentation made by him before the contract was made; orany remedy available to another party to the contract by reason of such a misrepresentation,(2) This section does not apply to a term in a consumer contract within the meaning of Part 2 of the Consumer Rights Act 2015 (but see the provision made about such contracts in section 62 of that Act) .
  • Nothing in this Act shall apply in relation to any misrepresentation or contract of sale which is made before the commencement of this Act.
  • (1) This Act may be cited as the Misrepresentation Act 1967.(2) This Act shall come into operation at the expiration of the period of one month beginning with the date on which it is passed.(3) This Act . . . (4) This Act does not extend to Northern Ireland.


    Misrepresentation Act 1967

    1967 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 Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

    S-1 Removal of certain bars to rescission for innocent misrepresentation.

    1 Removal of certain bars to rescission for innocent misrepresentation.

    Where a person has entered into a contract after a misrepresentation has been made to him, and—

    a ) the misrepresentation has become a term of the contract or
    b ) the contract has been performed

    or both, then, if otherwise he would be entitled to rescind the contract without alleging fraud, he shall be so entitled, subject to the...

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