Fraud Case Law
Misrepresentation
A false statement of fact made by one party that induces another to enter into a contract, made without the fraudulent intent that would make it outright fraud.
Unlike fraud, misrepresentation doesn't require the person making the false statement to know it was false or to act dishonestly — an innocent but incorrect statement that induces the other party to contract can still allow that party to avoid the contract.
The remedy available (rescission, and sometimes damages) can differ depending on whether the misrepresentation was fraudulent, negligent, or entirely innocent.
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