What is Fraudulent Misrepresentation?
Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract. A defendant commits fraudulent misrepresentation when he or she lies or misrepresents an important fact about in order to cause or induce the other party to enter into a contract. The misrepresentation can be in the form of anything that is designed to deceive the other party including innuendos, half-truths, or silence when there exists a duty to speak.
What Constitutes Fraudulent Misrepresentation?
The following six elements are generally required to prove the tort of fraudulent misrepresentation:
- The defendant made a false representation or lied;
- The misrepresentation is material to the transaction;
- The defendant made the misrepresentation with malice (the defendant made the statement with knowledge that the statement was false or the defendant made the statement with a reckless disregard as to the veracity of the statement);
- The defendant made the misrepresentation with the intention of inducing the other party to enter into a contract;
- The other party reasonably relied on the misrepresentation; and
- The defendant’s lie was the proximate cause for the plaintiff’s injury.
Generally, in order for an action for misrepresentation to proceed, the statement at issue must be one of present or past fact. Although there are exceptions, statements of opinion and statements which are made about the intention of a party or occurrence of some event in the future do not constitute the tort of misrepresentation. Fraudulent misrepresentation is one of the three recognized forms of misrepresentation in contract law. The other two are negligent misrepresentation and innocent misrepresentation.
Fraudulent misrepresentation is a distinct legal claim from defamation. Fraudulent misrepresentation is a contract claim arising out of fraud that occurs in breach of contract cases, while defamation is a false assertion of fact made about someone.
Damages for Fraudulent Misrepresentation
Fraudulent misrepresentation is a civil offense that may result in damages for the plaintiff and may allow for rescission of a contract depending on the circumstances.
Fraudulent Misrepresentation Attorneys
Do you have a legal issue that involves a claim of fraudulent misrepresentation? Call the experienced attorneys at Minc Law to evaluate your case. Call (216) 831 -0042 today to find out more information.