A template letter from a customer to a service provider rescinding / terminating a services contract because the provider made a misrepresentation that induced the customer to enter it, drafted for the law of England & Wales.
How to use this template, read this first - Replace every
[SQUARE-BRACKET]field before use. - Misrepresentation is a false statement of fact (or law) made by one party that induced the other to enter the contract. The remedies are rescission (setting the contract aside, so the parties are put back to their pre-contract positions) and/or damages (the Misrepresentation Act 1967 is central, including s 2(1) damages for negligent misrepresentation). - The right to rescind can be lost ("barred"), for example if you affirm the contract after learning the truth, after undue lapse of time, if restoring the parties to their original positions is impossible, or if a third party has acquired rights. So act promptly and do not continue performing as if the contract stands. - Rescission (for misrepresentation) aims to unwind the contract and restore the parties to their pre-contract positions; it is a different remedy from termination for breach, which ends future performance but does not unwind accrued rights. Consider carefully which remedy applies on the facts (or whether both are available). Misrepresentation is technical and easy to get wrong, take legal advice before sending this.
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[YOUR NAME / COMPANY] [ADDRESS]
[DATE]
[SERVICE PROVIDER NAME] [ADDRESS]
By [email and post], [Recorded Delivery]
Dear [NAME],
Re: The agreement for [DESCRIBE SERVICES] dated [DATE] (the "Agreement")
- We entered into the Agreement in reliance on the following representation(s) made by you [on/around [DATE], in [the proposal / email / meeting]]: [SET OUT THE STATEMENT(S) RELIED ON].
- That representation was false because [EXPLAIN why it was untrue]. Had we known the true position, we would not have entered into the Agreement [on these terms].
- We have only recently discovered the true position, on [DATE].
- Accordingly, we hereby elect to rescind the Agreement for misrepresentation and treat it as at an end [and/or**, if a separate contractual or common-law right to terminate also applies: we also give notice of termination under [clause X / our rights at common law] on the ground of [DESCRIBE BREACH]].
- Please arrange for: (a) the return of [£AMOUNT paid / property/materials provided]; and (b) [collection of any items supplied to us]. We will likewise make available [anything to be returned to you].
- We reserve all our rights and remedies, including the right to claim damages (including under the Misrepresentation Act 1967). Nothing in this letter affirms the Agreement or waives any of our rights.
Yours [faithfully/sincerely],
_________________________ [NAME], [TITLE], for and on behalf of [YOUR COMPANY]
--- This template is a starting point and not legal advice. Misrepresentation claims and the right to rescind are technical and time-sensitive, have a qualified solicitor review before use. Governing law: England & Wales.