Do you get what you pay for? Reasonable non-reliance clauses defeat misrepresentation claims

One would think that a property buyer should be entitled to a remedy where a seller makes untrue misleading representations about a property, inducing a sale that would not have happened but for those representations. And yet it is also reasonable for the parties to achieve certainty by agreeing that the terms of the contract alone constitute the extent of the agreement between them.

The recent Court of Appeal case of Lloyd v Browning confirms that a seller’s liability for misrepresentation can be excluded by the terms of the contract provided that the exclusion clause is fair and reasonable in accordance with the Unfair Contract Terms Act 1977.

To sell their farm, the defendant farmers sought to make the sale more attractive by obtaining planning permission to extend an L-shaped barn into a U-shaped building that would be split into three dwellings. Planning permission for the extension was denied, but planning permission was later granted for amended plans that did not include the extension…

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