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4.Categories of misrepresentation
a.Fraudulent misrepresentation
A claim for fraudulent misrepresentation is a claim founded on the tort of deceit.…
“…fraud is proved where it is shewn that a false representation has been made (1) knowingly, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false… To prevent a false statement being fraudulent, there must, I think, always be an honest belief in its truth.”…
That was a case where the defendants, who were directors of a tramway company, issued…
Where fraud is proved, however, the rules around the foreseeability of loss generally…
“On principle the distinction seems to be this: in contract, the defendant has made a promise and broken it. The object of damages is to put the plaintiff in as good a position, as far as money can do it, as if the promise had been performed. In fraud, the defendant has been guilty of a deliberate wrong by inducing the plaintiff to act to his detriment. The object of damages is to compensate the plaintiff for all the loss he has suffered, so far, again, as money can do it. In contract, the damages are limited to what may reasonably be supposed to have been in the contemplation of the parties. In fraud, they are not so limited. The defendant is bound to make reparation for all the actual damages directly flowing from the fraudulent inducement.”…
In terms of the measure of damages, the correct test is to calculate the quantum…
The Court of Appeal held that the trial judge had been wrong in calculating the quantum…
3.The Misrepresentation Act 1967
b.Negligent (or statutory) misrepresentation