Misrepresentation in English law

Misrepresentation in English contract law and English tort law refers to a situation where a person is induced to enter into a contract entirely or partly by a false assertion (of fact, not opinion or intention) made by the other contracting party. Claims that can be described as sales talk, such as advertising slogans, are not misrepresentations. If a misrepresentation is incorporated as a term of the contract, it may form the basis of an action for breach of contract, and contractual remedies. If not, the misrepresentee (the party influenced by the misrepresentation of the other party) may be able to rescind (withdraw from) the contract or obtain damages. A misrepresentation may be made fraudulently, negligently, or non‐negligently (innocently). A related term is "misstatement": a false assertion that causes harm other than by inducing a person to enter a contract. Contract law deals with the contractual implications of misrepresentation; in most casesEnglish law allows escape from a bargain when a contracting party has not given true consent due to misrepresentation. Tort law deals with civil wrongs and remedies.

When a misrepresentation has been made and an agreement was (or at any rate appeared to be) concluded, the misrepresentee does not have to bring a halt to the deal. Misrepresentations generally do not render a contract void, as does the contractual doctrine of common mistake or frustration; it makes a contract voidable at the option of the misrepresentee. Not all contracts entered into on the strength of misrepresentations will be bad for the misrepresentee, who may choose not to void the contract.

Remedies are partly regulated by the Misrepresentation Act 1967. English law generally allows a contract to be unwound, so that both parties are put back into the position before the agreement was made. It may be that the misrepresentation was incorporated into the contract as a term, so as an alternative one can claim the contract should subsist and claim for a loss in expectations. In this case the misrepresentee can equally sue for damages as if the misrepresentation had been true. A misrepresentee may also sue for any losses due to relying on the misrepresentation.

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