Legal Elements in Misrepresentation
There are two elements, generally, which must be found to be present for a misrepresentation: 1) There must be a false statement of fact or l… Which Statements Can Constitute A Misrepresentation?
The first legal element which must be present for misrepresentation is a false statement of fact or lawmade to a party intending to enter into a co… What Is Inducement?
The second legal element which must be present for misrepresentation is the statement made to induce another party to enter into a con… What Types of Misrepresentation Are there?
There are three types of misrepresentation: fraudulent misrepresentation, negligent misrepresentation, and innocent misrepresentation. They each h… Why Are Misrepresentations Risky to Your Business?
The possibility of making a misrepresentation is risky, firstly because you can be sued. Not only is being sued bad for your business’ reputation but it coul… What Should One Do If Another Party Makes Misrepresentation them?
After long negotiations with another party, your company agrees to buy an expensive piece of machinery from them. You receive the machine and find ou… Limiting Liabilities For Misrepresentations
Making a misrepresentation can have a detrimental impact on your business. It is pivotal, therefore, that you take care when making statements as par… The following are the main types of misrepresentation that can interfere with contractual relations:
There are three types of misrepresentation:
fraudulent misrepresentation, negligent misrepresentation, and innocent misrepresentation. They each have different requirements, and different corresponding remedies if found to be present. We will cover each one in turn.,
×Types and examples of misrepresentation in contracts are:
- Fraudulent misrepresentation: a reckless or intentional false statement that induces another party to enter into a contract. For example, a seller lying about the condition of a car to a buyer.
- Negligent misrepresentation: a careless or unreasonable false statement that induces another party to enter into a contract. For example, a real estate agent giving inaccurate information about a property to a buyer.
- Innocent misrepresentation: a honest but mistaken false statement that induces another party to enter into a contract. For example, a seller not knowing about a defect in a product that they sell to a buyer.
