A misrepresentation made with dishonest intention, or recklessly, or carelessly made whether or not it was false or true. Allows not only rescission of the contract at law, in equity, and damages for breach of contract (if included as a term) but also damages in tort for deceit. Upon discovering the fraud the aggrieved party should immediately elect to either repudiate or affirm the contract. That is, the contract is voidable.

Compare with innocent misrepresentation. For example, the vendor's agent states that the cottage for sale is not in a flight path when he/she knows it is even after the potential purchaser has indicated quite definitely that he/she would not buy the property if it is.

innocent misrepresentation