MISREPRESENTATION ORDINANCE

MISREPRESENTATION ORDINANCE

LAWS OF HONG KONG

MISREPRESENTATION ORDINANCE

CHAPTER 284





CHAPTER 284

MISREPRESENTATION

An Ordinance to amend the law relating to innocent misrepresentations.

[29th August, 1969.]

1. This Ordinance may be cited as the Misrepresentation
Ordinance.

2. Where a person has entered into a contract, after a
misrepresentation has been made to him, and

(a)the misrepresentation has become a term of the contract; or

(b) the contract has been performed,

or both, then, if otherwise he would be entitled to rescind the contract
without alleging fraud, he shall be so entitled, subject to the provisions
of this Ordinance, notwithstanding the matters mentioned in paragraphs
(a) and (b).

3. (1) Where a person has entered into a contract after a
misrepresentation has been made to him by another party thereto and as
a result thereof he has suffered loss, then, if the person making the
misrepresentation would be liable to damages in respect thereof had the
misrepresentation been made fraudulently, that person shall be so liable
notwithstanding that the misrepresentation was not made fraudulently,
unless he proves that he had reasonable grounds to believe and did
believe up to the time the contract was made that the facts represented
were true.

(2) Where a person has entered into a contract after a
misrepresentation has been made to him otherwise than fraudulently,
and he would be entitled, by reason of the misrepresentation, to rescind
the contract, then, if it is claimed, in any proceedings arising out of the
contract, that the contract ought to be or has been rescinded the court
or arbitrator may declare the contract subsisting and award damages in
lieu of rescission. if of opinion that it would be equitable to do so,
having regard to the nature of the misrepresentation and the loss that
would be caused by it if the contract were upheld, as well as to the loss
that rescission would cause to the other party.

(3) Damages may be awarded against a person under subsection (2)
whether or not he is liable to damages under subsection (1), but where
he is so liable any award under subsection (2) shaft be taken into
account in assessing his liability under subsection (1).





4. If any agreement (whether made before or after the com-

mencement; of this Ordinance) contains a provision which would
exclude or restrict

(a)any liability to which a party to a contract may be subject bi,
reason of any misrepresentation made by him before

the contract was made; or



(b) any remedy available to another party to the contract by

reason of such a misrepresentation.


that provision shall be of no effect except to the extent (if any) that, in
provision proceedings arising out of the contract, the court or arbitrator
may allow reliance on it as being fair and reasonable in the
circumstances of the case.

5. [Has Had its effect.]

6. Nothing in this Ordinance shall apply in relation to any
misrepresentation or contract of sale which is made before the
commencement of this Ordinance.

7. This Ordinance binds the Crown.
Originally 47 of 1969. Short title. Removal of certain bars to rescission for innocent misrepresentation. 2967, c. 7, s. 1. Damages for misrepresentation. 1967, c. 7, s. 2. Avoidance of certain provisions excluding liability for misrepresentation. 1967, c. 7, s. 3. Saving for past transactions. 1967, c. 7, s. 5. Application to Crown.

Originally 47 of 1969. Short title. Removal of certain bars to rescission for innocent misrepresentation. 2967, c. 7, s. 1. Damages for misrepresentation. 1967, c. 7, s. 2. Avoidance of certain provisions excluding liability for misrepresentation. 1967, c. 7, s. 3. Saving for past transactions. 1967, c. 7, s. 5. Application to Crown.

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