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Misrepresentation Act 1967
1967 CHAPTER 7
An Act to amend the law relating to innocent misrepresentations and to amend sections
11 and 35 of the Sale of Goods Act 1893. [22nd March 1967]
1 Removal of certain bars to rescission for innocent misrepresentation.
Where a person has entered into a contract after a misrepresentation has been made to
him, and—
(a) the misrepresentation has become a term of the contract; or
(b) the contract has been performed;
or both, then, if otherwise he would be entitled to rescind the contract without alleging
fraud, he shall be so entitled, subject to the provisions of this Act, notwithstanding the
matters mentioned in paragraphs (a) and (b) of this section.
2 Damages for misrepresentation.
(1) Where a person has entered into a contract after a misrepresentation has been made
to him by another party thereto and as a result thereof he has suffered loss, then,
if the person making the misrepresentation would be liable to damages in respect
thereof had the misrepresentation been made fraudulently, that person shall be so liable
notwithstanding that the misrepresentation was not made fraudulently, unless he proves
that he had reasonable ground to believe and did believe up to the time the contract was
made the facts represented were true.
(2) Where a person has entered into a contract after a misrepresentation has been made
to him otherwise than fraudulently, and he would be entitled, by reason of the
misrepresentation, to rescind the contract, then, if it is claimed, in any proceedings
arising out of the contract, that the contract ought to be or has been rescinded, the court
or arbitrator may declare the contract subsisting and award damages in lieu of rescission,
if of opinion that it would be equitable to do so, having regard to the nature of the
misrepresentation and the loss that would be caused by it if the contract were upheld,
as well as to the loss that rescission would cause to the other party.
(3) Damages may be awarded against a person under subsection (2) of this section whether
or not he is liable to damages under subsection (1) thereof, but where he is so liable any
2 Misrepresentation Act 1967 (c. 7)
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Changes to legislation: There are currently no known outstanding effects
for the Misrepresentation Act 1967. (See end of Document for details)
award under the said subsection (2) shall be taken into account in assessing his liability
under the said subsection (1).
[F13 Avoidance of provision excluding liability for misrepresentation.
If a contract contains a term which would exclude or restrict—
(a) any liability to which a party to a contract may be subject by reason of any
misrepresentation made by him before the contract was made; or
(b) any remedy available to another party to the contract by reason of such a
misrepresentation,
that term shall be of no effect except in so far as it satisfies the requirement of
reasonableness as stated in section 11(1) of the M1Unfair Contract Terms Act 1977; and
it is for those claiming that the term satisfies that requirement to show that it does.]
Annotations:
Amendments (Textual)
F1 S. 3 substituted by Unfair Contract Terms Act 1977 (c. 50), s. 8(1)
Marginal Citations
M1 1977 c. 50.
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2
Annotations:
Amendments (Textual)
F2 s. 4 repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), ss. 62, 63, Sch. 3
5 Saving for past transactions.
Nothing in this Act shall apply in relation to any misrepresentation or contract of sale
which is made before the commencement of this Act.
6 Short title, commencement and extent.
(1) This Act may be cited as the Misrepresentation Act 1967.
(2) This Act shall come into operation at the expiration of the period of one month
beginning with the date on which it is passed.
(3) This Act . . . F3does not extend to Scotland.
(4) This Act does not extend to Northern Ireland.
Annotations:
Amendments (Textual)
F3 Words repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), ss. 62, 63, Sch. 3
Misrepresentation Act 1967 (c. 7)
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Changes to legislation:
There are currently no known outstanding effects for the Misrepresentation Act 1967.
