What is an innocent statement made that turns out to be false?

Innocent misrepresentation occurs when a false statement is made by someone who genuinely believes it to be true and the statement then induces someone to enter into a contract.

What is innocent misinterpretation?

Legal Definition of innocent misrepresentation

: a representation that is made in good faith and believed to be true by the one making it but that is in fact false.

What is innocent misrepresentation example?

Innocent misrepresentation examples include a seller unknowingly offering defective merchandise, or if a person on Craigslist sells a used TV but does not know it's broken. Misrepresentation is a legal term meaning a false statement that has an impact on a contract.

Is an innocent misrepresentation?

Innocent misrepresentation is a statement of a material fact made by one party to induce a contract with another party, without the knowledge of its falsity, but with due care. The remedy is usually termination or rescission of the contract.

What are the 3 types of misrepresentation?

There are three types of misrepresentations—innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation—all of which have varying remedies.

Misrepresentation Lecture (3 of 4)

What is a false representation called?

What is fraudulent misrepresentation? Fraudulent misrepresentation is a false representation which is made knowingly, or without belief in its truth, or recklessly as to its truth.

Is innocent misrepresentation actionable?

The effect of an actionable misrepresentation is to make the contract voidable, giving the innocent party the right to rescind the contract and/or claim damages.

What is classed as false under misrepresentation?

A misrepresentation is a false statement of fact or law which induces the representee to enter a contract. Where a statement made during the course of negotiations is classed as a representation rather than a term an action for misrepresentation may be available where the statement turns out to be untrue.

What is negligent representation?

Negligent Misrepresentation Law Definition Elements & Defenses – California. Negligent misrepresentation may occur if a party to a contract makes an unwarranted and untrue assertion, believing the assertion to be true and intending to induce another party to enter into the contract.

What is promissory estoppel?

Within contract law, promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party's reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise.

What are the elements of a cause of action for innocent misrepresentation?

(1) The defendant made a false representation of a past or existing material fact susceptible of knowledge. (2) The defendant did so knowing the representation was false, or without knowing whether it was true or false. (3) The defendant intended to induce the plaintiff to act in reliance on that representation.

What is omission misrepresentation?

A misrepresentation is an affirmative act of making a false or misleading statement of fact, while an omission is the failure to disclose essential facts.

What is a unilateral mistake?

Unilateral mistake (where one party is mistaken and the other knows or ought to have known of the mistake). If the mistake relates to the fundamental nature of the offer the contract can be voided.

What is a statement of fact misrepresentation?

A misrepresentation is a misrepresentation of a statement of fact, not of general opinion, it is not a contract term, it must be material, in that it influenced a person to enter in to the contract and it is false. A fact is something current and cannot be something future.

What is willful misrepresentation?

Willful Misrepresentation means that an action or omission that constitutes a breach of a representation or warranty was taken or omitted to be taken for the purpose of misleading the party to whom such representation or warranty was made and was not merely a volitional action or omission.

What is ethical misrepresentation?

A misrepresentation is any statement by words or other conduct that, under the circumstances, amounts to an assertion that is false or erroneous, i.e., not in accordance with the facts.

What is an example of negligent misrepresentation?

Negligent misrepresentation occurs when someone makes a statement without regard to the true facts. For instance, if you tell a person that a stereo system is brand new when it is four-years-old and has been used heavily, then this can be considered negligent misrepresentation.

What are the 3 criteria for a statement to be treated as a misrepresentation?

For a misrepresentation to be actionable, it has to fulfil three requirements: - there must be an untrue statement; - it must be a statement of fact, not mere opinion; - and it must have induced the innocent party to enter the contract.

Is innocent misrepresentation a breach of contract?

Innocent misrepresentation

This is where the person making the representation had reasonable grounds for believing that the statement made was true. Innocent misrepresentation provides an entitlement to damages but not to rescind the contract.

What is statutory misrepresentation?

Howard Marine v Odgen: Statutory misrepresentation is available where the maker of the statement has no reasonable grounds for believing it to be true (S. 2(1) Misrepresentation Act 1976).

How do you establish innocent misrepresentation?

1. Innocent Misrepresentation. The pre-contractual statement was false, but the maker of the statement wasn't negligent in making the statement. The maker of the statement must reasonably believe that what was stated to be true.

Can a statement of law be a misrepresentation?

An untrue statement of fact or law made by Party A (or its agent) to Party B, which induces Party B to enter a contract with Party A thereby causing Party B loss. An action for misrepresentation can be brought in respect of a misrepresentation of fact or law.

What is false representation mean?

A representation is defined as “false” if it is misleading or untrue and the person making it is aware that it misleading or untrue. A “representation” is not specifically defined other than to say it is any fact or law. The nearest synonym would be a “statement” either said or in writing, or in fact implied.

What means misrepresent?

Definition of misrepresent

transitive verb. 1 : to give a false or misleading representation of usually with an intent to deceive or be unfair misrepresented the facts. 2 : to serve badly or improperly as a representative of. Other Words from misrepresent Synonyms More Example Sentences Learn More About misrepresent.

What is an Iustus error?

A fair or reasonable mistake. From the Latin iustus (just, fair, right) and error (mistake).