Fraudulent Misrepresentation - What you need to know

Expert Commercial Law have a panel of Fraudulent Misrepresentation solicitors on hand to assist clients.
Arrange a consultation

In the realm of contractual relationships, parties often rely on the representations made during negotiations to strike fair deals. However, when one party knowingly or recklessly makes false statements to induce the other into a contract without belief in its truth, it constitutes fraudulent misrepresentation. All of the legislation protecting people from fraudulent misrepresentation can be found in the Misrepresentation Act 1967.

Fraudulent misrepresentation is an untrue statement of fact or law with the intention to deceive and induce another party into a contract. The misrepresentation must be a statement of fact, not a mere expression of opinion, and it must be a material factor influencing the victim’s decision to enter into the agreement. This deceitful conduct can have severe consequences, resulting in reputational damage and a loss suffered for the misled party.

At Expert Commercial Law, we can put you in touch with an expert in fraudulent misrepresentation claims, they can provide you with the relevant legal advice and assist you in making a claim. Please do not hesitate to get in touch with our team today to find out more.

What is fraudulent misrepresentation?

Fraudulent misrepresentation refers to a deliberate and dishonest act where one party makes false statements, conceals facts, or provides misleading information to induce another party to enter into a contract or agreement. It is a form of deceit and is considered a serious legal offense.

To constitute fraudulent misrepresentation, several key elements must be present:

  • False Representation: The party accused of fraudulent misrepresentation must have made a false statement of fact. Mere opinions or statements of future intentions are not sufficient to qualify as misrepresentation unless they are made dishonestly.
  • Knowledge of Falsity: The party making the false representation must have known that the statement was untrue or, at the very least, acted recklessly without caring whether it statement was true or false.
  • Intent to Deceive: The false representation must have been made with the intention of inducing the other party to rely on it and enter into the contract.
  • Reliance: The party claiming fraudulent misrepresentation must have reasonably relied on the false statement when entering into the contract.
  • Materiality: The misrepresented fact must be material, meaning it must have been significant enough to influence the decision of the deceived party to enter into the contract.
  • Damages: The party claiming fraudulent misrepresentation must have suffered actual financial losses or damages as a result of relying on the false statement.

Types of misrepresentation can occur in various forms, including oral statements, written documents, or even through the omission of material facts. Additionally, a contract which explicitly ‘excludes liability’ or limits liability for fraudulent misrepresentation is ineffective. It is essential to differentiate fraudulent misrepresentation from other forms of misrepresentation, such as negligent or innocent misrepresentation.

If fraudulent misrepresentation is established, the innocent party typically has the right to rescind the contract and, in some cases, claim damages to compensate for any financial losses incurred due to the deception. Legal action can be taken to seek redress against the party responsible for the fraudulent misrepresentation and to restore the misled party to their pre-contractual position.

How to make a claim for fraudulent misrepresentation

Before proceeding with a claim, it is crucial to consult with an experienced solicitor who specialises in contract law and fraudulent misrepresentation. A legal expert will assess the strength of your claim, advise you on the available legal options, and guide you through the process. Expert Commercial Law can put you in touch with the most relevant legal professional for your case.

It would then be helpful and necessary to collect all relevant evidence that supports your claim of fraudulent misrepresentation. This may include:

  • Contractual Documents: Obtain copies of the contract and any related agreements or documents.
  • Communications: Preserve all written and electronic communications (emails, letters, texts, etc.) related to the negotiation and formation of the contract.
  • Witnesses: Identify any witnesses who can support your claim and be willing to testify in court, if necessary.
  • Expert Opinions: If applicable, seek expert opinions to demonstrate the materiality of the misrepresentation and its impact on the contract.

 

A specialist solicitor in this area of the law can then advise you on the merits of your case and your chances of being successful in making a claim. They can then initiate proceedings on your behalf.

 

How can Expert Commercial Law assist?

Expert Commercial Law have a panel of fraudulent misrepresentation solicitors on hand to assist in your case. Our panel firms understand the importance of fair business deals and can help you get justice for untrue statements of fact.

Our solicitors also help with commercial claims, such as breach of contractpartnership disputesfraud claimsprofessional negligence and CCJ removal.

Please note, we are not a firm of solicitors; however, we maintain a panel of trusted and regulated high profile legal experts. If you contact us in relation to a commercial law case, we will pass your case onto a panel firm in return for a fee from our panel firms. We will never charge you for passing on your case to a panel firm. 

Schedule Your Free Consultation

Please note, we are not a firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a commercial law case, we will pass your case onto a panel firm in return for a fee from our panel firms. We will never charge you for passing on your case to a panel firm. 

Consent

Contact us today
close slider