Contract Law - Misrepresentation: Types of Misrepresentation

There are three types:

  1. Fraudulent;
  2. Negligent; and
  3. Innocent
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  • Created by: Emma
  • Created on: 31-05-09 20:43

1. Fraudulent misrepresentation is one party to a contract knowingly making a false statement or makes it not believing it to be true or doesnt care about its truthfulness

  • True
  • False
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Other questions in this quiz

2. Which case defined misrepresentation as a "false statement made knowingly without belief in its truth, or recklessly, careless whether it be true or false?

  • Naughton -v- O
  • Howard Marine & Dredging Co Ltd -v- A Ogden & Sons (Excavations) Ltd
  • Derry -v- Peek
  • Smith & New Court Securities Ltd -v- Scrimgeour Vickers (Asset Management) Ltd

3. What are the remedies for fraudulent misrepresentation?

  • Damages or can seek rescission of the contract
  • Damages
  • Rescission of the contract

4. How are damages measured and assessed?

  • On the basis of losses in tort law
  • On the basis of losses in contract law

5. What is the aim of any available remedies?

  • To put the injured party back in the position he would have been in had the misrepresentation not occurred
  • To compensate for the injured parties loss
  • To allow the injured party to treat the contract as having never been in existence


Smith E

The remedies available for each type of misrepresentation, and basis, are easy to confuse and this test therefore highlights the importance of memorising each type. 

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