CHANAKYA NATIONAL LAW UNIVERSITY

NYAYA NAGAR, MITHAPUR, PATNA - 800001

ROUGH DRAFT SUBMITTED IN THE PARTIAL FULFILMENT OF

THE COURSE TITLED –

Law Of Contracts
Innocent and negligent misrerpresentation

SUBMITTED TO: -
Mrs. Sushmita Singh
Teacher Associate
SUBMITTED BY: -
NAME: SAHIL SUMAN
SEMESTER: II
ROLL NO.: 1849
COURSE: B.B.A., L.L.B(HONS)
SESSION: (2017-2022)
INTRODUCTION

An untrue statement of fact or law made by Party A (or its agent) to Party B, which induces

Party B to enter a contract with Party A thereby causing Party B loss. An action for

misrepresentation can be brought in respect of a misrepresentation of fact or law, a

misrepresentation is an untrue or misleading statement of fact made during negotiations by

one party to another, the statement then inducing that other party into the contract.The misled

party may normally rescind the contract, and sometimes may be awarded damages as well (or

instead of rescission).

The law of misrepresentation is an amalgam of contract and tort; and its sources are common

law, equity and statute. The common law was amended by the Misrepresentation Act 1967.

The general principle of misrepresentation has been adopted by the USA and various

Commonwealth countries.

There are three types of misrepresentation:

Fraudulent misrepresentation: where a false representation has been made knowingly, or

without belief in its truth, or recklessly as to its truth.

Negligent misrepresentation: a representation made carelessly and in breach of duty owed by

Party A to Party B to take reasonable care that the representation is accurate. If no "special

relationship" exists, there may be a misrepresentation under section 2(1) of the

Misrepresentation Act 1967 where a statement is made carelessly or without reasonable

grounds for believing its truth.

Innocent misrepresentation: a representation that is neither fraudulent nor negligent.

AIMS AND OBJECTIVES

• To discuss about the misrepresentation and its types in law of contract.

• To find out the cases of innocent and negligent misrepresentation.

RESEARCH QUESTONS:

• What is misrepresentation?

• What are its types?

• How fradulent and negligent misrepresentation is diffrent from innocent

misrepresentation?

• How intention matters in all three types?

RESEARCH METHODOLOGY:

The researcher will be relying on Doctrinal method of research to complete the project. These
involve various primary and secondary sources of literature and insights.

SOURCS OF STUDY

Secondary Sources : Books, Journals, articles and others

LIMITATIONS OF THE STUDY:

The researcher has territorial, monetary and time limitations in completing the project.
TENTATIVE CHAPTERIZATION:

• Introduction

• Types of misrepresentation

• fradulent misrepresentation

• negligent misrepresentation

• innocent misrepresentation

• Intention in all three

• case law

• Conclusion and Suggestions

SOURCES OF LITERATURE

• R K Bangia, CONTRACT-I (7 ed. 2017).

• Avtar Singh, CONTRACT & SPECIFIC RELIEF (12 ed. 2017).

And others.