Misrepresentation
Misrepresentation is an untrue statement of fact or law that induces the other party to contract. It renders the contract voidable and can give rise to damages, with the measure depending on which type of misrepresentation is established.
What "Misrepresentation" covers
- The claimant must show a false statement of fact or law that induced them to enter the contract (mere opinion, sales puff, or future intention usually will not suffice).
- Fraudulent misrepresentation requires a statement made knowingly, without belief in its truth, or recklessly (Derry v Peek).
- Under s.2(1) Misrepresentation Act 1967 the representor is liable in damages unless they prove reasonable grounds to believe, and belief that, the statement was true — reversing the burden of proof.
- Negligent misstatement at common law under Hedley Byrne requires a special relationship and assumption of responsibility.
- The main remedy is rescission (setting the contract aside), available for all types of misrepresentation.
- Rescission is barred by affirmation, lapse of time, third-party rights, or impossibility of restitution; s.2(2) allows damages in lieu of rescission for non-fraudulent misrepresentation.
- Silence is generally not a misrepresentation, but exceptions include half-truths, changed circumstances, and contracts of utmost good faith.
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For misrepresentation, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Treating statements of opinion or future intention as actionable statements of fact.
- Forgetting that s.2(1) reverses the burden of proof onto the representor.
- Missing a bar to rescission (affirmation, lapse of time, or inability to make restitution).
Learn this subtopic in the course
A video lesson, notes and exam-style practice on misrepresentation.
FAQ
Is misrepresentation tested on SQE1?
Yes — misrepresentation is part of the SQE1 Contract syllabus (FLK1) and can appear in single best answer questions.
How is misrepresentation examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (s.2(1) Misrepresentation Act 1967, s.2(2) Misrepresentation Act 1967) helps.