A misrepresentation is a false statement of fact made by one party to a contract to the other before the contract was entered into and which was one of the factors that led to the the other party to enter the contract. The burden of proof is on BSHC to demonstrate that all of the above has been met. WildeJames actually made a false statement in that he did not actually carry out the investigation and therefore informed BSHC of untrue facts. It does not appear that the statement was an opinion and since WildeJames is an expert as the author of the statement, he is in the best position to know the facts (Smith v Land and House Property Corporation). The statement must have been one of the factors why BSHC entered into the contract and must not be the sole reason Ediginton v Fitzmaurice. Under the Misrepresentation Act 1967 s 2(1) BSHC may be able to claim damages for negligent misrepresentation. All BSHC will have to do is establish that it was a misrepresentation and that they suffered a loss. WildeJames will have the difficult task of disproving that BSHC was right...
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