Misrepresentation
Misrepresentation in Commercial Disputes occurs where a false statement of fact is made, which induces the other party to enter into a contract.
If a misrepresentation can be shown, the contract or agreement becomes voidable, meaning that the party to whom the misrepresentation occurred can choose to rescind the contract, i.e. return payment and the goods to the original parties.
We are experts in navigating misrepresentation and act for our clients in both its identification and in seeking a satisfactory resolution.
There are three types of misrepresentation in the UK:
- Innocent misrepresentation: where the party making the misrepresentation believes it to be true, i.e. innocently misrepresents the position.
- Negligent misrepresentation: where the party making the misrepresentation is careless or fails to exercise reasonable care.
- Fraudulent misrepresentation: where the party making the misrepresentation does so deliberately and either knows the misrepresentation is false, or is reckless about the truth.
We regularly act on behalf of our clients in misrepresentation and can secure satisfactory resolutions including restoration to a party’s original position such as in innocent misrepresentation, along with compensatory damages payments which can include losses suffered as a result of the misrepresentation.
Recent work includes:
- We acted in a misrepresentation claim for c.£300k whereby our client was accused of misrepresenting the tax position relating to gold coins. We attended a mediation which resulted in a successful outcome with further litigations and costs avoided.
- We advised our client in a misrepresentation claim relating to representations given in respect of the sale of a company. The claim was made by way of counterclaim to a claim for breach of a share purchase agreement and we aiming to utilise this to resolve the claim between the parties.