Has the law concerning rescission for misrepresentation been made clearer? - Shoosmiths legal updates (press release)
When a contract has been entered into as a result of a misrepresentation, the predominant question nearly always asked is whether the contract can be rescinded or is the party limited to claiming damages. This article explores the recent decision by the Court of Appeal in Salt v Stratstone Specialist Limited T/A Stratstone Cadillac Newcastle [2015] EWCA Civ 745. The Law If a party enters into a contract and it relied upon a misrepresentation, the... In all three types of misrepresentation, the innocent party can seek rescission, where the parties are restored to the positions they were in before the contract was entered into. If the misrepresentation was fraudulent or negligent, the innocent party is entitled to seek damages of, or in addition, to rescission. The basis for this can be found in common law, or Section 2 (1) of the Misrepresentation Act 1967 (the ' Act '). If the misrepresentation was negligent or innocent, the court is able to award damages in lieu of rescission under Section 2 (2) of... The facts Mr Salt, purchased a Cadillac CTS 3. 6 litre Sport Luxury Car (the 'Vehicle') in September 2007. Before Mr Salt purchased the Vehicle, the defendant verbally informed him that it was 'brand new'. Source: www.shoosmiths.co.uk
