MISREPRESENTATION
A
party to a contract can in some situations avoid the contract if the
other party has misrepresented facts of the subject of the contract.
The remedy for misrepresentation depends on the seriousness of the
matter, and how vital it is to the contract.
See:
innocent
misrepresentation
mere
representation
fraudulent
misrepresentation.
If
the innocent misrepresentation is a term of the contract the
innocent party may either:
-
rescind the contract
-
sue for damages or
-
both.
These
rights apply to both innocent and fraudulent
misrepresentations that are terms of the contract. Compare
with a mere representation. Not all statements are
misrepresentations, or representations.
See
puffing
warranty
An
agent, or salesman must be careful about facts of the property being
sold whether in writing, orally, or by actions. For example,
deliberate concealment of house defects could be misrepresentation. A
misrepresentation must relate to some existing, or past fact. A
promise of some future profit is not misrepresentation but may be a
warranty.
Misrepresentation
by agents is usually covered by the relevant statute.