This Act matters in sales, investment, M&A, franchise, software and supplier negotiations. A polished pitch deck, data room answer or sales promise can become a legal problem if it is inaccurate and someone relies on it when signing.
Main laws
United Kingdom Act
Misrepresentation Act 1967
The Misrepresentation Act 1967 affects remedies where a party was induced into a contract by an untrue statement.
In forceUnited KingdomPlain-English guide4 practical checks
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- This Act matters in sales, investment, M&A, franchise, software and supplier negotiations.
- A polished pitch deck, data room answer or sales promise can become a legal problem if it is inaccurate and someone relies on it when signing.
Likely relevant if
- Businesses making sales claims before contract signature
- Founders raising investment or selling a company
- Franchisors and distributors
Check first
- Substantiate factual claims made before contract signature
- Keep sales, proposal and due diligence materials accurate
- Use entire agreement and non-reliance clauses carefully
What this means in practice
Key points
- Pre-contract statements can matter even if the final contract is shorter.
- A disclaimer is not a licence to exaggerate.
- Data room answers should be treated as legal communications, not casual chat.
When this law usually matters
Most businesses do not need to memorise the whole law. The useful starting point is to know when it is likely to affect a contract, customer journey, employee process, data flow or company decision.
Key points
- Businesses making sales claims before contract signature
- Founders raising investment or selling a company
- Franchisors and distributors
- SaaS and service businesses promising outcomes
What to check first
Sense check
- Substantiate factual claims made before contract signature
- Keep sales, proposal and due diligence materials accurate
- Use entire agreement and non-reliance clauses carefully
- Correct important statements if facts change before signing
Documents and workflows to review
Key points
- Sales proposal
- Pitch deck
- Due diligence Q&A
- Franchise disclosure materials
- Entire agreement clause