S18 of the Contract Act MISREPRESENTATION

Misrepresentation Is defined as an untrue statement of fact made by one party to other party to a contract, either before or at the time of making contract, with the intention that the person to whom the statement is made shall act such misrepresentation, and he does so act.

Two kinds of misrepresentation Are those statements of fact which the maker believes to be true but are , in fact false Innocent misrepresentation Are those statements of facts which the maker known to be false Fraudulent

The features common to innocent and fraudulent misrepresentation A misrepresentation must be a statement of fact The misrepresentation must be made by a party to the contract or by his agent The representee must have relied on misrepresentation The plaintiff must have suffered damage as a result of the misrepresentation

WITH V O’ FLANAGAN A doctor, X, represented in January that the takings of his medical practice were 2000p.Five months later, when the contract was signed the takings had considerably due to the doctor’s illness. X failed to disclose the reduction. Held: That contract could be recinded owing to X’s failure to disclose the fall in the taking