Misrepresentation—what is inducement?


Published by a ½Û×ÓÊÓƵ Dispute Resolution expert
Practice notes

Misrepresentation—what is inducement?


Published by a ½Û×ÓÊÓƵ Dispute Resolution expert

Practice notes
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This Practice Note considers the requirement for the representor both to have intended to and actually to have induced the representee, by their Misrepresentation, to enter into the contract. For details of the other key elements of an actionable misrepresentation, see Practice Notes:

  1. •

    Misrepresentation—what statements will establish a claim?

  2. •

    Misrepresentation—falsity (fraudulent, innocent or negligent misrepresentation)

The main elements of inducement in misrepresentation claims

The claimant must show that they were induced by the representation to enter into the contract.

The main elements of inducement were summarised by the Court of Appeal in Dadourian v Simms:

  1. •

    whether the representee was induced to enter a transaction by a material misrepresentation is a question of fact (Barton v County NatWest)

  2. •

    inducement will be presumed if the misrepresentation was of a nature likely to have played a part in the decision of a reasonable person to enter into a contract (Dadourian)

  3. •

    the misrepresentation need not have been the sole inducement, ie it is sufficient that the misrepresentation was 'present to his mind' or 'influenced'

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Jurisdiction(s):
United Kingdom
Key definition:
Misrepresentation definition
What does Misrepresentation mean?

A misrepresentation is a pre-contractual false statement of fact or law made by one party to a contract (or his agent) to the other that induced that party to enter into the contract.

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