As London Litigationlitigation: the bringing of a lawsuit or legal claim in cour... More solicitors expert in fraudfraud: in the context of commercial dispute resolution (as o... More and misrepresentationmisrepresentation: in contract disputes, a false statement t... More we are often asked to advise individuals and business clients alike on the possibility of making a claim for fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More.
Where parties are induced to enter into a contract or commitment based on a statement that they later discover to be false, they will be looking for redress and legal remedies. This brief guide sets out the basics of fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More and the ingredients for a successful claim.
What is fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More?
The accepted definition of fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More in English law was set out in the early case of Derry v Peek. In that case the House of Lords stated that fraudfraud: in the context of commercial dispute resolution (as o... More is proved where a false representation is made:
- with full knowledge of its untruth;
- without belief in its truth; or
- recklessly.
Proving fraudfraud: in the context of commercial dispute resolution (as o... More is not always straightforward, as it is often necessary to show that the alleged fraudster knew certain things or had a certain state of mind. But the remedies available to contracting parties who can demonstrate fraudfraud: in the context of commercial dispute resolution (as o... More include rescission of the contract and damagesdamages: in litigation and dispute resolution, financial com... More.
Claims for fraudulent representation
If you are seeking to make claims for rescission and/or damagesdamages: in litigation and dispute resolution, financial com... More based on fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More, you must be able to prove that:
- The alleged fraudster had no honest belief in the truth of what they were telling you, or was simply reckless and did not care whether it was true or false; and
- You wouldn’t have entered into the contract or agreement had they told you the truth.
It is crucial that the person inducing you to enter into the contract was aware that he was making a fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More. It isn’t enough to say that they made a mistake – in that case it may be an innocent or negligent misrepresentationnegligent misrepresentation: a false statement made where th... More, but not a fraudulent one. If they “honestly believe” what they are telling you is true, there is no claim for misrepresentationmisrepresentation: in contract disputes, a false statement t... More, although it may be sufficient for the party making the statement to know that they may not be giving you accurate information (thereby being reckless in their representation).
However, there isn’t a need to prove a motive on the part of the alleged fraudster.
If you can prove that you were induced into a contract by a fraudulent misrepresentationfraudulent misrepresentation: a statement that is false and ... More, you can rescindrescind: in contract disputes, to set aside a contract, or t... More the contract and claim damagesdamages: in litigation and dispute resolution, financial com... More that would put you back in the financial position you would have been in had you never entered the contract.
You should seek legal advice if you think you have a fraudfraud: in the context of commercial dispute resolution (as o... More claim. South Bank Legal is a London law firm and you can contact an expert fraudfraud: in the context of commercial dispute resolution (as o... More or misrepresentationmisrepresentation: in contract disputes, a false statement t... More solicitor for a confidential discussion today.