MISREPRESENTATION Sec. 18 & 19

Sec.18 of ICA classifies cases/defines misrepresentation as follows: The positive assertion in a manner not warranted by the information of the person making it,of that which is not true,though he believes it to be true.(unwarranted statement)1 An breach of duty which,w/o an intent to deceive gives advantage to the person committing it by misleading another to his prejudice or to the prejudice of anyone claiming under him2

Causing however innocently,a party to an agreement to make a mistake as to the substance of thing which is the subject matter of the agreement 3(inducing mistake about subject matter)

Consequences of misrepresentation: Sec.19:The party aggrieved or wronged can: Avoid the agreement or Insist that the contract be performed & that he be put in the position in which he would have been if the representation made had been true.4

Although the claim for damages are not entertained under misrepresentation but under certain cases right to claim damages arises even in case of misrepresentation : A-Breach of warrant of authority of an agent B-Negligent representation However if the party whose consent was caused by misrepresentation had the means of discovering the truth with ordinary diligence, he has no remedy

Distinguish b/w Fraud & Misrepresentation