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If the misrepresentation is discovered, the contract can be declared void. Depending on the situation, the adversely impacted party may seek damages. In this type of contract dispute, the party that is accused of making the misrepresentation is the defendant, and the party making the claim is the plaintiff.
Innocent misrepresentation: a representation that is neither fraudulent nor negligent. The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages.
In any contract, both sides must understand and trust each other. But if one side lies or tricks the other into the contract and causes harm, the damaged party can sue for fraudulent misrepresentation.
Contract damages - if the statement is decided to have been a term of the contract, the person claiming misrepresentation may also have the right to claim damages for the loss suffered by what is effectively a breach of contract.
Damages are usually awarded to an injured party for losses suffered as a result of the defaulting party's actions or non-actions. The purpose of an award of damages for breach of contract is to put the injured party in the position it would have been in had the contract been performed.
Negligent misrepresentation: a representation made carelessly and in breach of duty owed by Party A to Party B to take reasonable care that the representation is accurate.
If one party misrepresents specific facts, statistics, features, or benefits, they may be liable for breach of contract and/or action in tort. This is known as misrepresentation and in this article, we'll explain everything you need to know about this area of contract law.
Negligent misrepresentation arises when an individual unintentionally presents a false fact that induces the other party into entering into a contract.