What Is The Punishment For Misrepresentation?

What are some examples of misrepresentation?

In a fraudulent misrepresentation, a party makes a false claim regarding a contract or transaction but knows it isn’t true.

For example, if a person is selling a car and knows there is a problem with the transmission, yet advertises it in perfect mechanical condition, they have committed fraudulent misrepresentation..

What is an actionable misrepresentation?

In English law, an actionable misrepresentation is a false statement of fact made during pre-contractual negations by one party which induces the other party to enter into a contract.

What is the effect of a negligent misrepresentation?

What is the effect of negligent and fraudulent misrepresentation? The party can either rescind (cancel) the contract or keep the contract and sue.

How do you prove negligent misrepresentation?

How to Prove Negligent Misrepresentation?The defendant made a statement of fact while trying to induce the plaintiff to enter into a contract or a business transaction;The statement of fact was false and the defendant did not exercise reasonable care and was careless when acquiring and communicating the information;More items…•

How are damages for misrepresentation calculated?

In the case of a misrepresentation which is held to constitute a breach of contract, prima facie the measure of damages is the difference between the value of what the representee received and what he would have received if the representation had been true.

What is another word for misrepresentation?

In this page you can discover 57 synonyms, antonyms, idiomatic expressions, and related words for misrepresentation, like: counterfeit, simulation, canard, untruth, mask, cloak, deceit, dissembling, disguise, misstatement and distortion.

What are the consequences of misrepresentation?

A misrepresentation is a false statement of a material fact made by one party which affects the other party’s decision in agreeing to a contract. If the misrepresentation is discovered, the contract can be declared void and depending on the situation, the adversely impacted party may seek damages.

What is the remedy for misrepresentation?

The primary remedy for misrepresentation is rescission, which places the parties in the position they would have been in, if the contract had not been made. The effect of the contract is reversed. Damages are not available for innocent misrepresentation.

How do you prove misrepresentation?

To prove fraudulent misrepresentation has occurred, six conditions must be met.A representation was made. … The claim was false. … The claim was known to be false. … The plaintiff relied on the information. … Made with the intention of influencing the plaintiff. … The plaintiff suffered a material loss.

How can I stop misrepresentation?

Misrepresentation What Is It and How to Avoid It When Selling a BusinessWork with an experienced broker. … Don’t try to hide major flaws. … Be as transparent as possible with the books. … Have a lawyer look over your listings and agreements.More items…