Com­mon Forms of False Rep­re­sen­ta­tion

Fiji Sun - - Business -

Fraud­u­lent mis­rep­re­sen­ta­tion

Oc­curs when one makes rep­re­sen­ta­tion with in­tent to de­ceive and with the knowl­edge that

it is false. Ex­am­ple – A car re­pairer made rep­re­sen­ta­tion told a cus­tomer more re­pair work was needed on their car than was nec­es­sary. This is done to elicit money out of the car owner than per­form the ac­tual job re­quired.

Neg­li­gent mis­rep­re­sen­ta­tion

Oc­curs when the de­fen­dant care­lessly makes a rep­re­sen­ta­tion while hav­ing no rea­son­able ba­sis to be­lieve it to be true. For in­stance, if a man, who has or pro­fesses to have spe­cial knowl­edge or skill, makes a rep­re­sen­ta­tion by virtue thereof to an­other… with the in­ten­tion of in­duc­ing him to en­ter into a con­tract with him, he is un­der a duty to use rea­son­able care to see that the rep­re­sen­ta­tion is cor­rect, and that the ad­vice, in­for­ma­tion or opin­ion is re­li­able.

Ex­am­ple - A real es­tate bro­ker tries to sell a house to a buyer, who stresses his need for peace and quiet. The bro­ker prom­ises that the house is very quiet. In re­al­ity, the house next door is un­der­go­ing a very noisy re­con­struc­tion. Although the bro­ker did not know this, her prom­ise that the house was quiet was made with­out her hav­ing any rea­son to be­lieve that that was the case. She sim­ply as­sumed it. This would be a neg­li­gent mis­rep­re­sen­ta­tion (had she known about the con­struc­tion and lied about it, how­ever, that would be a much more se­ri­ous fraud­u­lent mis­rep­re­sen­ta­tion.

In­no­cent mis­rep­re­sen­ta­tion

Oc­curs when the rep­re­sen­tor had rea­son­able grounds for be­liev­ing that his or her false state­ment was true. This type of rep­re­sen­ta­tion pri­mar­ily al­lows for a rem­edy of rescis­sion, the pur­pose of which puts the par­ties back into a po­si­tion as if the con­tract had never taken place. This is judged on both the na­ture of the in­no­cent mis­rep­re­sen­ta­tion and the losses suf­fered by the claimant from it.

Ex­am­ple - Mr Red­grave, an el­derly so­lic­i­tor, ad­ver­tised for a part­ner to join the busi­ness and buy the ac­com­pa­ny­ing house. He said in an in­ter­view with Mr Hurd that the prac­tice brought in £300 pa, when it was only £200 pa. Mr Red­grave showed him sum­maries that came to a £200 pa av­er­age in­come and said that the rest of the £300 fig­ure was borne out by other pa­pers in the of­fice that he could check (in fact they showed no busi­ness). Mr Hurd did not in­spect the pa­pers, un­til he re­alised the truth just be­fore com­ple­tion of the agree­ment. He had signed the con­tract but he re­fused to go through.

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