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Company – Sale of shares – Misrepresentation. Court of Session: Refusing a reclaiming motion in an action concerning a premium the defender received for his shares after negotiating the sale of a company, in which the Lord Ordinary held that the pursuers, who claimed they agreed to the premium on basis of the defender's false representation that it was remuneration for his agreeing to act as a consultant to the company post-acquisition, were entitled to damages for loss caused by reliance on his negligent misrepresentation, the court rejected an argument that the pursuers were not entitled to damages because they should be treated as having discovered the true state of affairs prior to conclusion of the contract, the information having been in the hands of their agents.
Company – Sale of shares – Misrepresentation. Court of Session: Refusing a reclaiming motion in an action concerning a premium the defender received for his shares after negotiating the sale of a company, in which the Lord Ordinary held that the pursuers, who claimed they agreed to the premium on basis of the defender's false representation that it was remuneration for his agreeing to act as a consultant to the company post-acquisition, were entitled to damages for loss caused by reliance on his negligent misrepresentation, the court rejected an argument that the pursuers were not entitled to damages because they should be treated as having discovered the true state of affairs prior to conclusion of the contract, the information having been in the hands of their agents.
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