This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how to claim for fraudulent misrepresentation in England and Wales, including legal elements, practical steps, evidence requirements, remedies such as rescission and damages, and how to navigate civil proceedings for contract disputes.
A claim for fraudulent misrepresentation arises when one party to a contract makes a deliberately untrue statement to persuade another to enter into that contract, causing the misled party to suffer loss. This area of law is a key component of consumer and commercial contract disputes in England and Wales, providing remedies where deception has influenced contractual decisions. Unlike innocent or negligent misrepresentation, fraudulent misrepresentation carries more serious legal consequences and can lead to both rescission of the contract and damages under the tort of deceit. This article explains how fraudulent misrepresentation works, the legal elements required to bring a claim, practical steps involved, potential time limits and key considerations for claimants.
What Is Fraudulent Misrepresentation?
Fraudulent misrepresentation occurs when a person makes a false statement of fact (including law in certain cases) with one of the following intentions:
- They know the statement is untrue;
- They make the statement without believing it to be true; or
- They make it recklessly, without caring whether it is true or false.
The statement must have influenced the other party's decision to enter the contract. The misled party must have relied on the false statement in choosing to contract. If the claimant would have acted differently had the truth been known, this reliance helps establish the causal link necessary for a claim.
Fraudulent misrepresentation remains governed primarily by common law (the tort of deceit), developed through judicial decisions, rather than by statute alone.
Legal Elements of a Claim
A successful claim for fraudulent misrepresentation requires proof of the following elements:
- A false representation of fact or law was made before or at the time the contract was formed. The misrepresentation must be about something material which would have affected the other party's decision to contract.
- The false statement was made knowingly, without belief in its truth, or recklessly. This dishonest mindset distinguishes fraudulent misrepresentation from negligent or innocent misrepresentation.
- The claimant relied on the misrepresentation when entering the contract. If the claimant did not rely on the statement, liability generally will not arise.
- The claimant suffered loss as a result. The loss must be a direct consequence of entering the contract under false pretences.
Proof of dishonest intent is usually the most challenging aspect for claimants, as they must show what the representor knew or believed at the time. Evidence such as internal documents, emails, inconsistencies in later explanations, or business practices can help demonstrate intent.
Remedies Available in Fraudulent Misrepresentation
Rescission of the Contract
Rescission is an equitable remedy that seeks to set aside the contract, putting the parties back into the position they were in before the contract was entered into. Both parties must usually return any benefits received under the contract. Rescission is particularly relevant where the contract would not have been made but for the fraudulent misrepresentation.
Certain factors can prevent rescission, including substantial affirmation of the contract after discovering the misrepresentation or intervening rights of third parties. Courts have discretion to withhold rescission in cases where it would be impractical or inequitable.
Damages (Compensation)
Where fraudulent misrepresentation is proved, a claimant can seek damages to compensate for losses suffered. Because fraudulent misrepresentation is treated as the tort of deceit, the claimant is typically entitled to recover all losses that directly flow from the misrepresentation, without the usual contractual foreseeability limits.
Damages may include financial losses such as costs incurred, loss of expected profit, or diminution in value, depending on the circumstances of the case and evidence presented.
Time Limits for Bringing a Claim
Claims for fraudulent misrepresentation must usually be commenced within six years under the Limitation Act 1980, measured from the date the contract was formed or the misrepresentation was made. However, fraudulent claims can also be subject to an additional three‑year discoverability rule, allowing claimants to bring proceedings within three years from the date they discovered, or could reasonably have discovered, the facts giving rise to the claim if later. Practical legal advice should be sought to confirm applicable limitation periods in specific circumstances.
Step‑by‑Step: How to Bring a Claim
1. Identify the False Statement
The first step is to identify clearly the specific false statement made before the contract was entered into. This could be in marketing materials, verbal discussions, emails, formal proposals or signed documents. Written evidence is usually most persuasive.
2. Gather Evidence of Reliance
Claimants must demonstrate that they relied on that statement when deciding to enter the contract. This may involve showing that the false statement was a material factor in the decision to proceed. Contemporaneous correspondence and internal records can support reliance.
3. Collect Evidence of Loss and Intent
Documenting financial losses is critical. Claimants should keep invoices, receipts, business records and expert reports to quantify loss. To prove fraud, evidence indicating the other party's knowledge or reckless disregard for the truth at the time of the statement is often required.
4. Consider Legal Proceedings
If negotiation or alternative dispute resolution (ADR) fail to resolve the matter, a claim can be issued in the County Court or High Court depending on the value and complexity. The claim form and particulars must set out the fraudulent misrepresentation, how it induced the contract, and the loss suffered.
5. Seek Appropriate Remedies
At trial, if the court is satisfied the elements of fraudulent misrepresentation are established, it can order rescission and damages. The claimant may choose to seek both remedies concurrently if appropriate.
Practical Considerations
Misrepresentation vs Breach of Contract
It is important to distinguish fraudulent misrepresentation from a mere breach of contract. Breach of contract arises where contractual terms are not honoured; misrepresentation relates to pre‑contractual statements that induced the contract in the first place. Remedies and proof requirements differ between the two.
Contractual Exclusion Clauses
Clauses attempting to exclude liability for misrepresentation may not be effective where fraud is alleged. The Misrepresentation Act 1967 makes certain attempts to contract out of liability for misrepresentation subject to reasonableness tests, and in cases of fraud, exclusion may be particularly scrutinised.
Costs and Funding
Bringing a fraudulent misrepresentation claim can involve court fees, legal costs and, if experts are involved, expert fees. Claimants should consider funding options and whether costs may be recoverable from the losing party.
Common Questions
Is fraud the same as fraudulent misrepresentation?
No. Criminal fraud and civil fraudulent misrepresentation share the concept of dishonesty, but civil claims focus on compensating the injured party for loss, whereas criminal law deals with prosecution and punishment under statutes such as the Fraud Act 2006.
Can I claim if the statement was implied, not spoken?
Yes. Misrepresentation can be express or implied by conduct, so long as it amounts to a false statement of fact that induced the claimant to contract.
Does the claimant have to rescind the contract to get damages?
Not necessarily. A claimant can seek both rescission and damages; the choice depends on the circumstances, such as whether unwinding the contract is practical.
Key Takeaways
To claim for fraudulent misrepresentation in England and Wales, a claimant must establish that a false statement was made knowingly or recklessly, induced their decision to contract and caused loss. Remedies include rescinding the contract and recovering damages under the tort of deceit. Evidence of the misrepresentation, reliance, loss and intent are central to the claim. Time limits must be observed, and contractual exclusion clauses and practical issues such as costs should be considered carefully. While proving fraud is challenging, understanding the legal requirements and process helps claimants assess their options effectively.
