Derry v Peek (1889) established the principle that fraudulent misrepresentation requires proof of dishonesty. The House of Lords ruled that mere negligence is insufficient for fraud, setting a high threshold for claimants seeking damages for deceit.
Definition of Fraudulent Misrepresentation: The case established that fraudulent misrepresentation requires proof of dishonesty or recklessness, not merely negligence or error in judgment.
