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MISREPRESENTATION ACT (NORTHERN IRELAND) 1967 - SECT 2



2.(1) Where a person has entered into a contract after a misrepresentation has
been made to him by another party thereto and as a result thereof he has
suffered loss, then, if the person making the misrepresentation would be
liable to damages in respect thereof had the misrepresentation been made
fraudulently, that person shall be so liable notwithstanding that the
misrepresentation was not made fraudulently, unless he proves that he had
reasonable ground to believe and did believe up to the time the contract was
made that the facts represented were true.

(2) Where a person has entered into a contract after a misrepresentation has
been made to him otherwise than fraudulently, and he would be entitled, by
reason of the misrepresentation, to rescind the contract, then, if it is
claimed, in any proceedings arising out of the contract, that the contract
ought to be or has been rescinded the court or arbitrator may declare the
contract subsisting and award damages in lieu of rescission, if of opinion
that it would be equitable to do so, having regard to the nature of the
misrepresentation and the loss that would be caused by it if the contract were
upheld, as well as to the loss that rescission would cause to the other party.

(3) Damages may be awarded against a person under subsection (2) whether or
not he is liable to damages under subsection (1), but where he is so liable
any award under subsection (2) shall be taken into account in assessing his
liability under subsection (1).[


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© 1967 Crown Copyright

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