1.0 Introduction
Many statements can be made in the course of trying to win work and there can be a temptation to overstate facts. In other words, say things or make statements in other to ensure or cause another to do or act in a particular way. The effect of causing another to act in such manner or circumstance is the focus of this article.2.0 Meaning of Misrepresentation
A misrepresentation is an untrue statement made by one party (to a contract) to the other before or at the time of contracting, with regard to some existing fact or to some past event which is one of the causes that induced the contract. Simply put, where a person acts or makes a statement which makes another person honestly believe and act on same is what is called representation. However, where such act or statement is false and was deliberately made to induce the other party into doing something ordinarily he will not do but for the representation, such act or statement will amount to misrepresentation. With respect to contract of sale, a misrepresentation is a false statement of fact or law which induces another party i.e. the representee to enter a contract. Where a statement made during the course of negotiations in a contract is classed as a representation and the other party is made to believe same, an action for misrepresentation may be available where the statement turns out to be untrue[1].3.0 Types of Misrepresentation
There are three types of misrepresentation in law which includes- Fraudulent misrepresentation,
- Negligent misrepresentation, and
- Innocent
4.0 Essentials of misrepresentation:
The following are essential of misrepresentation:- The representation must be untrue.
- The representation must relate to the fact essential to the contract.
- The misrepresentation must have been addressed by one party to the party misled.
- The representation must induce the other party to enter into contract.
5.0 Effect of Misrepresentation in Contract of Sale
The effect of a finding of misrepresentation in a contract is that the contract is voidable i.e. the contract exists but may be set aside by the representee (the aggrieved party). In other words, the effect of a misrepresentation is to make it voidable by the injured party who can then choose (subject to some qualifications) whether to set it aside and treat it as if it had never been made (this is called rescission) or to continue with it. The available remedy in a contract of sale generally includes rescission and or damages, though such available remedy will depend on the type of misrepresentation. Where a party relies on a misrepresentation in entering a contract, the party may exercise both or any of these options with respect to fraudulent or negligent misrepresentation:-- rescind (cancel) the contract
- sue for to compensate for any loss.
6.0 Cases when an aggrieved party has no remedy in law:
The following are instances where an aggrieved party has no remedy in cases of misrepresentation. (i) Where consent was given with the knowledge of misrepresentation, (ii) where a third party has acquired rights in the subject matter of contract in good faith and for value. (iii) Where the aggrieved party had the means of discovering the truth ordinarily with diligence. (iv)Where there has been a substantial lapse of time between the conclusion of the contract and the institution of the action to set it aside. (v) Where the plaintiff/Claimant after discovering the misrepresentation affirms the contract.7.0 Conclusion
Conclusively, this article has tried to consider the meaning of misrepresentation as well as its effect on a contract of sale. Hence, once all the elements above has been established, there is hence misrepresentation and the injured or aggrieved party can bring an action in tort for misrepresentation and claim appropriate remedy or reliefs provided for under the law.[1]https://www.google.com.ng/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&ved=0ahUKEwja3dPH4MrZAhUMZVAKHY8aBMIQFghQMAc&url=http%3A%2F%2Felawresources.co.uk%2FMisrepresentation.php&usg=AOvVaw2gYkjhNn6VRVNUkDiT0D9C [2] Edgington v Fitzmaurice (1885) 29 Ch D 459, Esso Petroleum v Mardon [1976] QB 801.