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.

innocent misrepresentation
mere representation
fraudulent misrepresentation.

If the innocent misrepresentation is a term of the contract the innocent party may either:

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.


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.