Parties may say all sorts of things when negotiating a contract. Where sophisticated commercial parties are involved, most pre-contractual statements will, no doubt, be both carefully considered and accurate. But as we all know, things can go wrong.
Where a pre-contractual statement turns out to be false, the implications can be serious. The counterparty may have a right to unwind the contract, or to claim damages, or both. In an extreme case, there may be criminal liability for fraud.
In this third of our updated and relaunched series of contract disputes practical guides, Harry Edwards, Ceri Morgan and David Coulling consider the circumstances in which parties may be liable for pre-contractual statements, the remedies that may be available to a counterparty, and some practical steps that can be taken to minimise the risks.
We will be publishing further editions of the updated series of contract disputes practical guides in the coming months. In the meantime, the first and second editions in our relaunched series, and the remaining editions from the original series, are available here on our Litigation Notes blog.
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2021