Remedies

Misrepresentation—whether deliberate, negligent, or innocent—can lead to the cancellation (rescission) of a contract and, in some cases, a right to compensation. For sales of goods and services, damages may be awarded for negligent misrepresentation unless the misrepresenting party proves they had reasonable grounds to believe their statement was true.

Contracts can be rescinded for any form of misrepresentation if it induced the agreement. Rescission undoes the contract and requires both parties to restore their original positions. While rescission for innocent misrepresentation is available, equitable considerations like delay, changes in position, or third-party rights can bar this remedy.

Equity provides broader relief than common law, allowing discretionary damages in lieu of rescission for certain contracts. Fraudulent misrepresentation also entitles the innocent party to tort-based damages, which cover all direct consequences, including unforeseeable losses. Careless misrepresentation may give rise to compensation under statute or professional negligence principles.

Exclusion clauses cannot limit liability for fraudulent misrepresentation. Statutory protections ensure compensation for misrepresentation in consumer contracts and sales of goods, with rights to repair, replacement, or price reduction for non-conforming goods. Courts may also award damages instead of rescission, ensuring remedies are just and equitable.

Read a detailed Article on this subject with the Legislation and Cases, browse Irish Legal Guide  or Contact Us for advice below.