Three Types Of Misrepresentation In The Common Contract Law

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Introduction: Any contract between two or more parties requires taking extreme measures before making any decision, to assure and avoid any type of deficiency or consequence that might take place in the future. However, there is one specific variable, misrepresentation, which may affect the decision of the offered party even when they have cleared all the measures that should be taken. Misrepresentation is a form of deception where one party states a fallacious statement or act to the other party before the contract was made, thus resulting the inducement of the other party to enter the contract. In the business world, every representor looks for the best interests of his/her commodity when negotiating a contract with another party. Unfortunately, it might lead to deceiving the other party in accepting the contract and causing future problems and leading the case to be taken to court. There has been legal actions and systems created to compensate the damages caused by misrepresentation, such as the Common Contract Law. The Common Contract law is followed by around 17 countries including the United States and Great Britain, since it was originated there (Grimmitt, 2009). There are three types of misrepresentation which are either fraudulent, negligence, or innocent misrepresentations, thus each type has its own remedies when taken to court (Weitzenböck, 2012). The Common Law was designed to treat such cases and what type of actions should be taken; however, because

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