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P3 Unit 5

In: Business and Management

Submitted By billybanes
Words 520
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In this I will describe the law with respect to misrepresentation
Misrepresentation is an idea in the contract law of England which talks about false statement of fact made by one party to another party .For example it could be a false statements or promises made by Vodafone regarding the quality or the provenance of a product.
Fraudulent misrepresentation
Fraudulent misrepresentation is basically the opposite of innocent misrepresentation, as it means that Vodafone not only lied or misrepresented something about a transaction, but that Vodafone did it on purpose, in order to trick the other party which is most of the time the consumers . Therefore, it is the most serious of all the types of misrepresentation and has the worst consequences. A perfect example is if Vodafone decide to sell someone a phone for £100 telling customers that it is fully functional, when the individual selling the product clearly knows that it is actually totally broken. The buyer, who is an international business man who constantly has to make international phone calls for the company that his working for, now cannot perform his job, and is fired. Because of the fact he received a phone that was not working; the British court can require Vodafone to pay back the Business man for the loss of his job.

An innocent misrepresentation
Is when a representation or a statement that is made in good faith and believed to be true by the one making it (Vodafone) but that is in fact false .It’s possible for employees to make mistake during the process of a contract transaction. One of the examples is that Vodafone may not inform the consumer concerning the terms of payment and the exact amount of money that the consumer will see be substrate from his bank account every month from his bank account, which is clearly something that the company should be, communicated with customers. But has it is an innocent misrepresentation it can easily be fixing, by making a phone call to the individual and explain the procedure and the payment works within the organisation. However as it something that is been done accidently consumers cannot be taking suit the company, unless they have clear evidence that it was not done accidently.

Negligent misrepresentation
Negligent misrepresentation is a concept that is used in contract laws. The case of negligent misrepresentation, If that the company makes a statement without any grounds for knowing whether it is true or not, and an aspect of carelessness is involved. For example if Vodafone are providing a phone box without a charger in it, without actually make sure that a charge is in it .It will then be consider of being negligent misrepresentation as the seller is unaware of the full content of the product being sold .Another example could be the delivery services, Vodafone often ensure that mobile being shipped will be receiving within 7 days without actually knowing if the product will be receiving within the deadline mention .So if the product don’t make it on time it then define that there is a negligent misrepresentation that took place.

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