Misrepresentation in contract law malaysia
For example, misrepresentation occurs when a person signs a contract, then suffers damages as the result of taking the other person’s advice. In this case, the wronged party can then sue for misrepresentation, and the court may order compensatory or punitive damages , or both. Misrepresentation may therefore be defined as unambiguous, false state of fact or fact which is addressed to the party misled to induce them to enter into a contract Esso Petroleum Esso Petroleum Co. Ltd v Mardon (1976) Expert advise on likely sale at a petrol station, Commercial Bank of Sydney v R H Brown & Co. (1972) the bank misrepresented the claimant customer’s financial standing was held responsible for the damages. The object of damages for breach of contract is to place the innocent party in the same position as though the contract had been performed. But, in an action for fraudulent misrepresentation, the object of the law is to place the representee in the position he would have been had he not been induced.