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MISREPRESENTATION Sec. 18 & 19
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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
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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)
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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
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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
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Distinguish b/w Fraud & Misrepresentation
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