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Word Count: 404
In this case it concerns misrepresentation A party to a contract who wishes to show that he was induced to enter into the contract by a misrepresentation must prove one of the following 1that the statement which he claims he relied on was a statement of fact not an expression of opinion or a statement of law 2that the statement was made before or at the time the contract was entered into 3that the statement was made to induce him to enter into the contract 4that hem in fact relied on the statement although there may be other factors on which he also relied such as price or availability 5that the statement was untrue After that discriminate which kinds of misrepresentation 1fraudulent misrepresentation 2negligent misrepresentation 3innocent misrepresentation Fraudulent misrepresentation that misrepresentor knows that what he said id false he is reckless as to what he has said he does not care what he has said is true or false Case Derry v Peek 1889 Negligent misrepresentation that misrepresentor has no reasonable grounds to believe what he said is true he has liable for damages Case Smith v Land House Property Corporation Innocent misrepresentation that misrepresentor has reasonable grounds to believe what he said is true so that he has not liable for damages In this case McMoney has made a misrepresentation to A1 He was not accurate to describe a work as an unpublished manuscript of Walter Scott is not the same as the Walter Scott So that McMoney make a fraudulent misrepresentation or negligent misrepresentation to A1 A1 may rescind the contract and may also sue for damages from McMoney when Bob sue A1 Nowadays Bob discovers that author is not the Walter Scott he wants to sue A1 In this moment A1 is believed that it was true when McMoney tell him So that when the contract was entered into he will be liable for
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