Measure of damages available under s2(1) is measure of
damages for the tort of deceit.
This allows recovery of all damages directly flowing
from the misrepresentation, even if not foreseeable.
Defendants were not
fraudulent, but were treated as if they had been.
McKendrick submits no justification for this anomaly –
Rules applicable to assessment of damages should be
derived from tort of negligence, not deceit]