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Three Types Of Misrepresentation

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Misrepresentation definition
A voidable contract is an agreement between two parties that may become unenforceable for several of legal reasons. There are many reasons why the contract can be voidable such as failure by one or both parties , misrepresentation ,a mistake, undue influence or duress, one party 's legal incapacity to enter into a contract, one or more terms that are unconscionable, or a breach of contract.
Misrepresentation is one of the vitiating factors and we can identify it as fraudulent, negligent, or innocent misstatement, or an incomplete statement, of a material fact. If a specific misrepresentation induces the other party to enter into a contract, that party may have the legal right to end the contract or claim for damages. …show more content…

There are three types of misrepresentation: fraudulent, negligent and wholly innocent. The remedies depend on the type of misrepresentation.
1. Fraudulent misrepresentation:
Occurs when one makes representation with intent to deceive and with the knowledge that the subject matter is false. An action for fraudulent misrepresentation allows for a remedy of damages and rescission. One can also sue for fraudulent misrepresentation in a tort action. Fraudulent misrepresentation is capable of being made recklessly. For example: Ahmed advertises a used car as having (new breaks, new tires, and new engine) in actuality, everything is 5 years old. A buyer relies on the representation that the car has new parts and buys the car, but the buyer wouldn’t have paid the price if he knew the parts were actually five years old. In this case Ahmed misrepresented the condition of the car.
2. occurs when the defendant carelessly makes a representation while having no reasonable basis to believe it to be true. This type of misrepresentation is relatively new and was introduced to allow damages in situations where neither a collateral contract nor fraud is …show more content…

Negligent misrepresentation under Statute
When dealing with a negligent misrepresentation it is most lucrative (joint with fraudulent misrepresentation, Contributory Negligence notwithstanding) for an action to be brought under statute law as the burden of proof that is required passes to the person who made the

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