LAW OF MISREPRESENTATION

Remedies in the Law of Misrepresentation



Remedies in the Law of Misrepresentation

Introduction

The purpose of this study is to suggest the remedial measures to the Anna as she bought the house for £500,000 where the seller misrepresented the fact from her that six months ago prior to the sale agreement, Government or the concerned authority named the houses of the Mulberry Road as the Grade II buildings. The law provides different clauses which serves for the compensation or help the affected person to come over the losses and also provide provisions for the repayment in the case of misrepresentation whether it is fraudulent, negligent or innocent. It means Anna has to rebuild or has to do a lot of changes in the current design or model of the house. However, she had previously planned to give further extension to the current design of the house.

Discussion

Remedies Available in Misrepresentation

The law offer different provisions regarding the misrepresentation in the contract which provides remedies for the affected party. In the contract of sale of the property, it has been observed that many people face misrepresentation or fraud. The remedies available in misrepresentation for Anna depend upon the nature of the misrepresentation. Rescission of a contract is available as a remedy whether the misrepresentation is fraudulent, negligent or innocent. However, this remedy is not automatic and the party to whom rescission is available has the right either to elect to rescind the contract or to affirm it. The effect of rescission is that the contract is terminated and the parties are put back in the position in which they stood before the contract was entered into. Orders can be made to include the repayment of money paid under the contract, and payment of interest on that money.

Recovery of Payment

Accordingly, in a swap contract for example, the parties will be able to recover payments made. Rescission is thus a very attractive remedy for a customer wishing to extract itself from an unprofitable transaction, and accordingly misrepresentation is often alleged by counterparties wishing to avoid their liability under transactions they have entered into. Rescission is an equitable remedy and is therefore not available in all circumstances. Under the Misrepresentation Act 1967, the court has a discretion to award damages in lieu of rescission where there has been a non-fraudulent misrepresentation leading the parties to enter into a contract. Also, if the contract has been affirmed or the party claiming rescission has delayed in seeking its remedy, then rescission may not be available. However, damages in those circumstances are likely to be available.

Recovery of Damages

Furthermore, Anna has also the right to get the damages from the seller. Damages are available to a party who was induced to enter into a contract by a fraudulent misrepresentation for all consequential losses that it suffers. In other words, the misrepresented person can recover damages in respect of all losses resulting from the fraudulent misrepresentation. Damages are also available as a remedy for a negligent or innocent ...