Essentials of misrepresentation. From the foregoing discussion, It follows that for alleging misrepresentation, the following four things are necessary
(i) There should be a representation; made innocently, with an honest belief as to its truth and without any desire to deceive the other party, either expressly or impliedly.
(ii) The representation must relate to facts material to the contract and not to mere opinion or hearsay
(iii) The representation must be, or must have become untrue
(iv) The representation must have been instrumental in inducing the other party to enter into a contract (As per the Explanation to Section 19).
Effects of Misrepresentation
In case of misrepresentation, the aggrieved party has two alternative courses open to him
(i) He can rescind the contract, treating the contract as voidable; or
(ii) He may affirm the contract and insist that he shall be put in the position in which he would have been; if the represen-tation made had been true (Sec. 19). Misrepresentation does not entitle the aggrieved party to claim damages by way of interest or otherwise for expenses occurred.
Illustration A, innocently in good faith tells B that his T.V. set is made in Japan. B. thereupon buys the T.V. set. However, it comes out to be an Indian make. A. is guilty of misrepresentation. B. may either avoid the contract or may insist on its being carried out. In the latter case, B may either ask for replacing the set by a Japanese make set or may keep the Indian make set and claim the difference in price between that set and a Japanese make set.
Exception. The above remedy is lost, if the party whose consent was caused by misrepresentation, had the means of discovering the truth with ordinary diligence.
Illustration A. by a misrepresentation, leads B erroneously to believe that 500 maunds of indigo are made annually at A’s factory. B examines the accounts of the factory, which show that only 400 maunds of indigo have been made. After this B buys the factory. The contract is not voidable on account of A ‘s misrepresen-tation (Illustration ( b) to Section 19].
(i) There should be a representation; made innocently, with an honest belief as to its truth and without any desire to deceive the other party, either expressly or impliedly.
(ii) The representation must relate to facts material to the contract and not to mere opinion or hearsay
(iii) The representation must be, or must have become untrue
(iv) The representation must have been instrumental in inducing the other party to enter into a contract (As per the Explanation to Section 19).
Effects of Misrepresentation
In case of misrepresentation, the aggrieved party has two alternative courses open to him
(i) He can rescind the contract, treating the contract as voidable; or
(ii) He may affirm the contract and insist that he shall be put in the position in which he would have been; if the represen-tation made had been true (Sec. 19). Misrepresentation does not entitle the aggrieved party to claim damages by way of interest or otherwise for expenses occurred.
Illustration A, innocently in good faith tells B that his T.V. set is made in Japan. B. thereupon buys the T.V. set. However, it comes out to be an Indian make. A. is guilty of misrepresentation. B. may either avoid the contract or may insist on its being carried out. In the latter case, B may either ask for replacing the set by a Japanese make set or may keep the Indian make set and claim the difference in price between that set and a Japanese make set.
Exception. The above remedy is lost, if the party whose consent was caused by misrepresentation, had the means of discovering the truth with ordinary diligence.
Illustration A. by a misrepresentation, leads B erroneously to believe that 500 maunds of indigo are made annually at A’s factory. B examines the accounts of the factory, which show that only 400 maunds of indigo have been made. After this B buys the factory. The contract is not voidable on account of A ‘s misrepresen-tation (Illustration ( b) to Section 19].
What are the Essentials of misrepresentation?
![What are the Essentials of misrepresentation?]()
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