What is the test for materiality in a claim for misrepresentation?
Alberta, Canada
The following excerpt is from McAteer v. Devoncroft Developments Ltd., 2001 ABQB 917 (CanLII):
The fourth and final requirement is that the misrepresentation materially induced the plaintiff to act in a manner that results in damage. The test of materiality is objective: would the statement have induced a reasonable person to act in reliance on it? If so it must then be determined whether the plaintiff actually relied on it. Perell, quotes Hinchey v. Gonda, [1955] O.W.N. 125 (H.C.) for the proposition that the test of determining materiality is whether the plaintiff’s conduct might have been different had the representation not been made.
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