2
Damages for misrepresenta- tion.
1997. c. 7. 42
Avoidance of
certain
provisions
excluding
liability
for mis- representation,
1967, A 7, 11 3.
Amendment of
Sections 13
and 37 of Sale
of Goods
Ordinance.
1967. c. 7. L4
(Cap. 26.)
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 misrepresenta- tion was not made fraudulently, unless he proves that he mad 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 mis- representation 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then, if it is claimed, in any proceedings arising out of the contract, that the contract ought to be or has been rescinded the court or arbitrator may declare the contract subsisting and award damages in lieu of rescission, if of opinion that it would be equitable to do so, having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 it 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 sub- section (2) whether or not he is liable to damages under subsection (1), but where he is so liable any award under subsection (2) shall 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-
(d) any liability to which a party to a contracı may be subject by reason of any misrepresentation made by him before the contract was made; or
(6) 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 any 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.
The Sale of Goods Ordinance is amended-
(a) in section 13 by deleting in subsection (3) "or where the contract is for specific goods, the property in which has passed to the buyer.":
(b) in section 37 by inserting, after "or" in the first place
where it occurs, the following-
"(except where section 36 otherwise provides)".
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.
This Ordinance binds the Crown.
Passed by the Hong Kong Legislative Council this 27th day of August, 1969.
Deputy Clerk of Councils.
This printed impression has been carefully compared by me with the bill, and is found by me to be a true and correctly printed copy of the said bill.
Deputy Clerk of Councils.
Saving for past transactions. 1967. 6. 7. 1 3.
Application to Crown.