Misrepresentation
A misrepresentation is a false statement of fact made by one party that induces the other to enter the contract; it can be fraudulent, negligent or innocent, and may entitle the misled party to rescission and/or damages.
Last reviewed 14 June 2026
There must be an unambiguous false statement of fact that was material and actually induced the contract. Fraudulent misrepresentation requires knowledge of the falsity or recklessness as to it (Derry v Peek (1889) 14 App Cas 337).
Negligent misstatement can give rise to liability under Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 and under s 2(1) of the Misrepresentation Act 1967; the primary remedy is rescission, with damages depending on the type of misrepresentation.
Key cases
- Derry v Peek (1889) 14 App Cas 337
- Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465
- Smith v Land & House Property Corp (1884) 28 Ch D 7
Frequently asked questions
What are the types of misrepresentation?
Fraudulent (Derry v Peek), negligent (Hedley Byrne / s 2(1) Misrepresentation Act 1967) and innocent — each carrying different remedies.
What remedy is available for misrepresentation?
Rescission of the contract is the primary remedy, often with damages; the measure of damages depends on whether the misrepresentation was fraudulent, negligent or innocent.