... subdivided in three different areas. A statement is fraudulent, when "it's made with knowledge of its falsity, without belief in its truth, or recklessly, i.e. not caring whether it's true or false" (The law of contract-11th/G.H. Treitel/p.343). In this case the plaintiff can rescind the contract and sue for damages under the tort of deceit. Negligent misrepresentation is given when a statement is believed to be true but unreasonably, allowing the misled party to sue for rescission and damages. The final possibility, an innocent misrepresentation, is also made honestly but this time reasonably. The victim of an innocent misrepresentation may be granted damages instead of rescission, but not in addition to it. However this is at the discretion of the court to decide whether this is fair and convenient. It may be difficult, but it is very important to make a distinction between the last two options, as the remedies of ...

See this essay or coursework document in full right now