Misrepresentation and Misleading Conduct – LAWS5136 Lecture 10

Summary:

Misrepresentation and misleading conduct are important aspects of contract law and consumer protection. Misrepresentation refers to a false statement of fact made by one party to another, which influences the other party’s decision to enter into a contract. Misrepresentation can be innocent, negligent, or fraudulent, and legal remedies may include rescission of the contract or damages. Misleading conduct, on the other hand, covers a wider range of deceptive behaviours that can create false impressions or induce a person to act to their disadvantage. Consumer protection laws often address misleading conduct, with potential penalties including fines and injunctions. To navigate these complex legal issues, it is essential to understand the various forms of misrepresentation and misleading conduct, their legal implications, and available remedies.

Excerpt:

Misrepresentation and Misleading Conduct

1. Introduction

In the context of commercial agreements, this is about broken promises and misleading statements or conduct. Not the promises in the agreement itself (whether written or otherwise). These are terms, either conditions or warranties. (Revision from Contract Law) Rather, misrepresentations are broken promises which induce the other party to enter into agreements. See Turner’s definition at [7.135].

Alternative definitions:

• Heffey, Patterson and Robertson, in Principles of Contract Law (2002 Lawbook Co) at p 466, describe misrepresentation as follows:

“A misrepresentation is a false statement made expressly or impliedly by one party (the represented) to another (the representee) that acts as an inducement to the latter to enter into a contract with the former. As a general rule, in order to obtain relief, the representee must show that he or she was misled by and relied on a positive misrepresentation of fact by the represented. In an appropriate case, the representee can claim either rescission of the contract or damages, and in some cases, both forms of relief. These remedies are available under the general law, that is, at common law or in equity.”