An untrue statement of fact or law made by Party A to Party B which induces Party B to enter a contract thereby causing Party B loss. An action for misrepresentation can be brought in respect of a misrepresentation of fact or law.
There are three types of misrepresentation: fraudulent misrepresentation (where a false representation has been made knowingly, or without belief in its truth, or recklessly as to its truth); negligent misrepresentation (a misrepresentation under the Misrepresentation Act 1967 where a statement is made carelessly or without reasonable grounds for believing its truth); and innocent misrepresentation (misrepresentation made entirely without fault).
The remedies for misrepresentation are rescission (www.practicallaw.com/A36811) and/or damages. For fraudulent and negligent misrepresentation, the claimant (www.practicallaw.com/A34662) may claim rescission and damages. For innocent misrepresentation, the court has a discretion to award damages in lieu of rescission; the court cannot award both. For more information, see Practice note, Misrepresentation.