- Statute – s.2(2) Misrepresentation Act 1967 – damages may be awarded
in lieu – Zanzibar v British Aerospace.
Damages
- If fraudulent misrepresentation is proved: damages via the tort of deceit
- Derry v Peek.
- If fraud cannot be proved, damages available under if a ‘special’
relationship exists – Hedley Byrne v Heller. - Damages under the Misrepresentation Act 1967 s.2(1).
Points arising:
- The Misrepresentation Act 1967 is now the normal route to a remedy,
and the most widely used. - The burden of proof shifts to the misrepresentor to prove innocence.
- This is a heavy burden and it is difficult to avoid liability – Howard
Marine v Ogden. - Damages are assessed on a tort basis putting the injured party into the
position which they would have been in had the wrong not happened –
Royscott v Rogerson. - Loss of profits may also be recoverable in some circumstances – East v
Maurer.
The remedies for non-fraudulent misrepresentation are now more or less
equivalent to those for breach of contract or fraudulent misrepresentation.
Questions
1 Bill describes his car to his friends.‘It’s a good little runner,’ he says.‘It has been serviced
regularly, and is very reliable. It had a complete overhaul only recently, and has had a new
clutch fitted.’
Ben was involved in this conversation, and a few weeks later hears that Bill is now
wanting to sell his car. Ben is thinking of running a taxi service to earn some extra
money during the summer holiday season, and, remembering his previous conversation
with Bill, decides to buy the car. A week after the sale, Ben finds several problems with
the car, including the need to fit a new clutch.
He also discovers that the service and overhaul have been undertaken by Bill himself.
Ben uses the car for another week as he has clients relying on his taxi service, but now
wishes to claim against Bill. Advise Ben.
2 Bill is a student at a local college. He was advised that he should have a computer to
help him with his studies. He visited a nearby specialist computer shop,‘AB Computers’
and explained that he wanted a computer ‘for college work only’. Bill asked advice of
the assistant, Conn, over which model to buy and was told that he needed a Supremo,
the most expensive model in the store, as this was the only computer compatible with
Misrepresentation 183