Misrepresentation

To make good a case in deceit, the evidence had to establish that the first defendant had made a statement of fact; that he knew the statement to be false (or had no belief in its truth) or that he was reckless as to its truth or falsity; that the claimant was intended to rely on it; that the claimant had relied on it; and by reason of that reliance the claimant had suffered loss.

A statement of fact once made was likely to have a continuing effect—until the transaction was completed, or until the form of the transaction was changed so that the statement ceased to be material, or until some other event occurred which meant that the statement ceased to be operative on the mind of the hearer. Because of that continuing effect a statement that was true when made could be rendered false by a change in circumstances. If the maker of the statement came to know of the