Misrepresentation (English contract law)
A misrepresentation is a false statement of fact or law made to another party that induces that party to enter a contract. Depending on the circumstances, it may be fraudulent, negligent or innocent. Rescission and damages may be available subject to their distinct legal conditions and bars; the Misrepresentation Act 1967 provides specific rules for damages. A statement does not become actionable merely because it is inaccurate: material context, reliance and applicable law matter.
Worked example
A seller falsely states that a machine is new, and the buyer relies on that statement when entering the contract. The buyer considers rescission and any damages claim, subject to the evidence, type of misrepresentation and applicable restrictions.
Common mistake
Assuming every inaccurate sales statement automatically proves actionable misrepresentation, or that rescission and damages follow without checking their conditions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Supporting | September 2026–June 2027 |