Part 4 - Remedies for Misrepresentation
2012/// Filed in: Contract Law (UK)
Below are a few relevant principles and leading cases regarding the remedies for misrepresentation:
Car & Universal Finance Co Ltd v Caldwell: Rescission is, in principle, available to all types of misrepresentation by notifying the other party or taking some other reasonable action to indicate the intention to rescind (e.g., contacting the police, applying to the courts for a formal order to recision). A formal order of rescission provides that any property exchanged under the contract reverts to its original owner.
Whittington v Seale-Hayne: Payment of money known as an indemnity designed to put the parties back to their former positions with regards to obligations necessarily created by the contract (i.e., it is a restitutionary claim). Note an indemnity payment is different and separate from damages.
Doyle v Olby: In the case of fraudulent misrepresentation the party must be compensated (damages) for `all the actual damage directly flowing from the fraudulent inducement' (i.e., it does not matter that the loss was not foreseeable, only that the misrepresentation caused the loss).
Royscot Trust Ltd v Rogerson: Damages under s.2(1) should be calculated in the same way as if the statement was made fraudulently (i.e., all looses are recoverable, not simply those that were reasonably foreseeable as it would be the case for negligent mis-statement under Hedley Bryne.
Car & Universal Finance Co Ltd v Caldwell: Rescission is, in principle, available to all types of misrepresentation by notifying the other party or taking some other reasonable action to indicate the intention to rescind (e.g., contacting the police, applying to the courts for a formal order to recision). A formal order of rescission provides that any property exchanged under the contract reverts to its original owner.
Whittington v Seale-Hayne: Payment of money known as an indemnity designed to put the parties back to their former positions with regards to obligations necessarily created by the contract (i.e., it is a restitutionary claim). Note an indemnity payment is different and separate from damages.
Doyle v Olby: In the case of fraudulent misrepresentation the party must be compensated (damages) for `all the actual damage directly flowing from the fraudulent inducement' (i.e., it does not matter that the loss was not foreseeable, only that the misrepresentation caused the loss).
Royscot Trust Ltd v Rogerson: Damages under s.2(1) should be calculated in the same way as if the statement was made fraudulently (i.e., all looses are recoverable, not simply those that were reasonably foreseeable as it would be the case for negligent mis-statement under Hedley Bryne.