When one party deliberately deceives another into entering a contract or transaction, the law provides a powerful remedy under the tort of deceit. Also known as fraudulent misrepresentation, this legal claim allows victims to recover losses caused by deliberate dishonesty.
In this article, we explain what the tort of deceit is, how it differs from other types of misrepresentation, what you must prove to succeed in a claim and what remedies may be available.
What is the tort of deceit?
The tort of deceit arises when a person knowingly makes a false statement with the intention of causing another person to act upon it. It’s one of the most serious forms of misrepresentation in UK law because it involves deliberate dishonesty rather than negligence or mistake.
The key principle is that no one should suffer a loss because of another’s fraudulent actions. Claims can arise in many contexts, including business transactions, financial investments, property sales and employment disputes.
A classic example is when a seller provides false information about the financial health of a company to persuade a buyer to purchase it. If the buyer suffers loss as a result, they may bring a claim for deceit.
Related reading: How to Purchase a Commercial Property
How it differs from negligent and innocent misrepresentation
Misrepresentation can be divided into three main categories:
- Fraudulent (tort of deceit): A false statement made knowingly or without belief in its truth.
- Negligent: A false statement made carelessly or without reasonable grounds for believing it to be true.
- Innocent: A false statement made honestly, where the person believed it to be true.
Only fraudulent misrepresentation gives rise to the tort of deceit, which allows for more extensive remedies, including damages for all direct losses suffered as a result of the fraud.
Elements of a claim
To prove a claim for deceit, the claimant must establish four key elements:
1. False representation
The defendant must have made a false statement of fact. This could be written, spoken or implied by conduct. Silence alone is not usually enough, unless the defendant had a duty to disclose the truth.
2. Knowledge of falsity
The claimant must show that the defendant knew the statement was false, did not believe it was true or was reckless as to its truth. Recklessness means making a statement without caring whether it is true or false.
3. Intention to deceive
The false statement must have been made with the intention of inducing the claimant to act or refrain from acting. The intention can be inferred from circumstances, especially where the defendant stood to gain.
4. Reliance and loss
The claimant must have relied on the false statement and suffered a loss as a result. The loss must be directly caused by the deceit, though it does not need to be foreseeable.
Evidence required
Proving deceit can be challenging because it requires demonstrating dishonesty, which often relies on circumstantial evidence. Relevant evidence may include:
- Written correspondence or records showing false representations
- Witness testimony confirming reliance on the statement
- Financial records showing the resulting loss
- Expert reports assessing damages or valuing losses
Courts scrutinise such cases closely and the standard of proof, while civil, requires a high degree of probability due to the seriousness of the allegation.
Remedies for deceit
If successful, a claimant can seek several remedies:
- Damages: To compensate for all losses flowing directly from the deceit, even if they were not foreseeable.
- Rescission: Cancelling the contract and restoring both parties to their pre-contract position.
- Restitution: Recovery of profits or benefits obtained by the wrongdoer.
- Injunctions: Preventing further use of false information or continued misrepresentation.
In some cases, criminal proceedings may also be pursued under the Fraud Act 2006 if the deceit involves criminal fraud.
Limitation period
Claims for deceit must usually be brought within six years from the date the fraud was discovered or could reasonably have been discovered. Delays can weaken a claim so prompt legal action is vital once deception is suspected.
The role of specialist solicitors
Fraud and deceit claims often involve complex financial evidence and serious allegations of dishonesty. Specialist litigation solicitors can help by:
- Reviewing all relevant documents and evidence
- Assessing the strength of the claim before formal proceedings
- Drafting pre-action letters or negotiating settlements
- Representing you in High Court litigation if required
They can also work alongside forensic accountants or investigators to trace lost assets and quantify damages accurately.
Related reading: Reasons Why You Should Not Represent Yourself in the Court
Protecting your interests
Being deceived in business or personal matters can have devastating financial and reputational consequences. Acting quickly with the support of experienced legal professionals can help you recover your losses and hold the wrongdoer accountable.
Please note that this article is solely for informational purposes. It’s not a substitute for legal advice. We encourage readers to contact Osbourne Pinner for case-specific guidance.
For clear, confidential advice on bringing a claim under the tort of deceit or responding to allegations of fraud, contact our dispute resolution experts. We can assess your case and guide you through each stage of the process.
Every case starts with a free 30-minute consultation, held remotely or at one of our offices. You can find us in Harrow, Canary Wharf, Piccadilly Circus and Manchester, but we’re equally happy to talk via video call. Call 0203 983 5080, email [email protected] or use the form below to get started.
