Innocent Misrepresentation (Misrepresentation - Vitiating factors)-FS

Question 1

What is an innocent misrepresentation under Section 2(1) of the Misrepresentation Act 1967?

Answer 1

A false statement made honestly and on reasonable grounds, meaning the representor had no fault in making it.

Question 2

What must a representor prove for a misrepresentation to be considered innocent?

Answer 2

That they honestly believed the statement to be true and had objectively reasonable grounds for that belief.

Question 3

What remedy is available to the representee in a case of innocent misrepresentation?

Answer 3

Rescission of the contract, provided rescission is not barred.

Question 4

Are damages available as of right for innocent misrepresentation?

Answer 4

No, damages are not available.

Question 5

What happens when a contract is rescinded for innocent misrepresentation?

Answer 5

Both parties are returned to their pre-contractual positions (e.g., return of goods and payment).

Question 6

How does innocent misrepresentation differ from negligent misrepresentation?

Answer 6

Innocent misrepresentation involves reasonable belief in the truth of the statement; negligent misrepresentation lacks reasonable grounds for such belief.