A statement of fact - Part 1 (Misrepresentation - Vitiating factors)-FS

Question 1

What type of statement must be made for a misrepresentation to be actionable?

Answer 1

A statement of fact. Misrepresentation must be based on a false statement of fact, not opinion, future intention, or mere puffery.

Question 2

Can a statement of opinion amount to a misrepresentation?

Answer 2

Generally no, unless the person giving the opinion is in a position to know the truth or the opinion implies a factual basis that is untrue.

Question 3

Can a statement of law be treated as a statement of fact in misrepresentation claims?

Answer 3

Yes. A misstatement about the existence or effect of legislation can constitute a misrepresentation of fact.

Question 4

Can a statement of future intention be a misrepresentation?

Answer 4

No, unless it can be shown that the person never actually intended to act on it when the statement was made.

Question 5

What is “mere puff” and does it qualify as a misrepresentation?

Answer 5

Mere puff refers to exaggerated sales talk that no reasonable person would take literally. It does not qualify as a misrepresentation.

Question 6

In what situation can an opinion amount to a misrepresentation?

Answer 6

When the opinion is given by someone with supposed or actual expertise, or it implies factual knowledge that turns out to be false.

Question 7

In the context of misrepresentation, what must be understood about both parties for an opinion to remain an opinion?

Answer 7

Both parties must understand that the statement is speculative or based on belief, not fact.

Question 8

What legal principle is illustrated when someone makes a statement about suitability of land use without knowledge or experience?

Answer 8

A statement of opinion is not a misrepresentation if it is made without intention to deceive and both parties understand it as such.