Posted February 1, 2014 by advocateguru in Learning Centre
 
 

Misrepresentation

“Misrepresentation” means and includes

(1) The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;

(2) Any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him, by misleading another to his prejudice or to the prejudice of anyone claiming under him;

(3) Causing, however innocently, a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement. Misrepresentation is any untrue statement made by a party to the contract to another party which induces the other party to act upon the statement and enter into the contract. This false representation must relate to some fact which is material to the contract caused to obtain consent of the other party. If this false statement is made innocently without an intention to deceive it amounts to misrepresentation. However, if such statement is made intentionally with a view to deceive the other party it amounts to fraud. So we can say an honest misstatement of facts is called misrepresentation.

Example:- X aged 25 years took an Insurance policy stating his age in the application as 22 years unknowing the implications thereby induces the Insurance company to charge lower premium. This amount to misrepresentation by breach of duty to disclose all the facts without any intention to deceive.


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