Making a Misrepresentation Claim

What is a misrepresentation claim?

A misrepresentation claim typically refers to a legal action taken by one party against another. The claimant alleges that the other party made a false statement or misrepresented a fact that induced the first party into entering into a contract or agreement.

In essence, it involves accusing someone of providing inaccurate information or omitting material facts with the intent to deceive or manipulate the other party. Misrepresentation claims can arise in various contexts, including business transactions, insurance contracts, property deals, and consumer transactions.

To establish a claim, the party making the claim typically needs to demonstrate several key elements, including:

• False Statement: There must be an untrue statement of fact made by one party.
• Materiality: The false statement must be material, meaning that it is significant enough to influence the decision of the other party.
• Reliance: The false statement must have been relied upon and caused the representee to enter into the contract or agreement.
• Damages: The misrepresentation must have caused some form of harm or loss to the party making the claim.

Expert Commercial Law has access to a highly experienced and knowledgeable panel of legal experts who are able to provide expert legal advice and assist you with a misrepresentation claim. If you would like to find out more, please do not hesitate to get in touch with our team today.

Different types of misrepresentation claims

Misrepresentation claims can be categorised into different types based on the nature of the misrepresentation and the intent of the party making the false statement. 

• Fraudulent Misrepresentation: This is the most serious type, where the party making the statement knowingly made it false or acted recklessly in not checking its truth. They intended to deceive the other party into entering the contract, such as lying about a product’s features, forging documents or deliberately concealing crucial information.
• Negligent Misrepresentation: Here, the party making the statement did not take reasonable steps to ensure its accuracy. They were careless in verifying the information before presenting it. They might not have intended to deceive, but their negligence led to the other party’s reliance on the false statement. Examples could include claims based on outdated or unverified information, failing to disclose known risks, and misinterpreting legal aspects.
• Innocent Misrepresentation: This occurs when the party making the statement honestly believed the statement was true, but it turned out to be wrong. They lacked the knowledge or means to verify its accuracy. While there’s no intention to deceive and the defending party had belief in its truth, this type can still have consequences for the party making the misrepresentation.

Defending a claim

Under the Misrepresentation Act 1967, a defendant must prove that they believed the statement they made in creating a contract with another party was true, and this can be difficult to prove from a legal standpoint but can limit liability. 

The defending party must collect and analyse evidence that supports their defence. This may include documents, communications, contracts, and other relevant materials that shed light on the accuracy of the information provided or the circumstances surrounding the alleged misrepresentation.

The defence must decide whether the alleged misrepresentation was made knowingly and with the intent to deceive (fraudulent misrepresentation), negligently, or innocently. The level of intent and knowledge can affect the legal standards and defences available.

They must then evaluate whether the alleged misrepresentation was material, meaning it was significant enough to influence the other party’s decision-making process, and whether the other party actually relied on the misrepresentation to their detriment. Challenging materiality and reliance can be key strategies in defending against a misrepresentation claim.

Defending against a misrepresentation claim can be complex and fact-specific. It’s essential to approach the defence diligently and strategically, with the help of a specialist solicitor who has experience in this area of law. 

What remedies are available?

Remedies for misrepresentation often include rescinding the contract and putting the innocent party in a position as if the contract never existed. Alternatively, the injured party may seek damages for the suffered losses due to the false representation. In some cases, a claim for misrepresentation may lead to legal action for breach of contract.

How can Expert Commercial Law assist?

If you believe you have been a victim of misrepresentation and wish to bring a claim, please contact us today, and we will put you in contact with a solicitor who can assist with your case. 

Our team takes the stress out of finding you a solicitor to assist with your misrepresentation claim. Our panel of commercial solicitors has a strong track record of successful outcomes.

All of the solicitors on our panel have the experience and expertise required to take on your case. Each solicitor is vetted before being allowed onto our panel, and we only select the best in the business. All of our solicitor firms are authorised and regulated by the Solicitors Regulation Authority (SRA).

Our commercial litigation lawyers also help with other commercial claims and dispute resolution, such as director disputes and CCJ removal.

Please note we are not a law firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a case, we will pass your case on to 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.