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What is misrepresentation in contract law? Fraudulent misrepresentation may be defined as any type of lie or false statement that is used to trick a person into an agreement.Before talking about the three types of misrepresentation, however, it's important to first define what misrepresentation means in the context of contract law. A misrepresentation is a false statement of fact made that has the result of inducing the other party to enter a contract.