| Misrepresentation, derived in 1830s, is the outcome of development of torts in Common Law, and is used to remedy the finance loss resulting in the relationship of business exchange. The character of object in misrepresentation makes itself an independent sort of economic torts.Misrepresentation is different from warranty in the contract law. The former is enforced on the basis of deceit of the parties relating the business exchange, or negligence due to the breach of duty to use reasonable care, or action of breach of the guaranty duty. The later on the basis of consistent promises concerning the warranty relating to the goods between the parties of business exchange as a part of the basis of the bargain. Misrepresentation belongs to torts, so the remedies may be valid under the condition of creating misrepresentation, on the contrary, warranty is the rule of contract law, accordingly the action of assumpsit can be used as the result of breach of the warranty, owing to the difference of the basis of liability between misrepresentation and warranty.Misrepresentation should be differentiated from the estoppel in equity. Misrepresentation belonging to the substantive law can remedy the receiver damages because of reliance in the misrepresentation. In order to pretend the principal of the justice and conscience in the equity, the doctrine of estoppel in equity can be used to prevent the person attaining the right in the common law from making his right enforceable as one of the equitable remedies when the misrepresentation concerning his right or certain facts attains other person's reliance.Misrepresentation is also distinguished from the promissory estoppel. The receiver can be remedied on the basis of misrepresentation, and the substantive damages may be recovered when misrepresentation is made, and cause other person's damages during the business exchange. If a promise is made, and the reliance of it brings about other person's damages, the remedy of pretending reliance interest can be used according to the doctrine of promissory estoppel.The object of misrepresentation is the pecuniary loss produced in the relationship of business exchange. The multiplicity in the business relation must influence the system of misrepresentation: fraudulent misrepresentation, as the fundamental sort of misrepresentation, refers to tortious remedy used to recover the economic losses when the misrepresentation is fraudulently made to induce other person's reliance. Negligent misrepresentation may be sued when the duty of reasonable care, produced by the specialized skill in the special type of business relation, is breached. When the trust relationship or the fiduciary relationship exists, the trustee assumes the responsibility of serving the beneficiary. he will assume the liability of innocent misrepresentation, if he supplies the beneficiary with misrepresentation about the business on the breach of his responsibility despite no deceit or negligence. Multiple remedies can be used towards the misrepresentation in the business exchange, because the misrepresentation conforms to many substantive laws which provide different remedies. Recovery for damages can be generally used in torts, so the methods of accounting damages are the core issues. The out of pocket damages, the consequential damages and even the bargain damages can be recovered selectedly in order to protect the interests of the defendant.Misrepresentation is the result of the development of torts in Common Law, of the development of social business exchange. With the development of business and economy in China, the relation of business exchange turns to be more complicated. For example, the inequity of parties of business in negotiation is more and more remarkable, which makes it true that the party obtaining predominance suppress the other party in the business exchange, then the liability gets ensued. Transaction needs contract law, however, liability demands torts. It is tendency for the law of torts to intervene in the business exch...
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