Misrepresentation

What is a misrepresentation and comparison with similar claims?

A claim for misrepresentation arises where one party to a contract (the representor) made an untrue statement of fact that induced the other (the representee) to enter into the contract. The false statement may be made innocently, negligently or fraudulently. An actionable misrepresentation entitles the innocent party to rescind the contract unless the court determines otherwise, though it may award damages in lieu of rescission. Damages are also available where the misrepresentation has caused the innocent party loss. Misrepresentation claims can be difficult to prove and a prospective defendant will have a number of possible defenses to such a claim, eg, that the statement in question was not intended to be relied on or that the representee would have entered into the contract in any event. A claim for misrepresentation has similarities to, but can be distinguished from, claims for breach of contract, mistake, negligent misstatement and deceit. For a pre-contractual statement to be an actionable representation it must have been a statement of fact. Such a statement can be made expressly in writing or orally or may be implied from words or conduct. In the case of implied representations, care must be taken to test the credibility of the claimant’s assertions as to an implied representation when bringing such a claim since the more difficult it is to formulate the terms of the implied representation, the more reluctant the court will be to accept that it should be implied.

Where damages are claimed (in addition or alternatively to rescission), that the misrepresentation caused the representee to suffer loss.

Statements of intention, opinion and promises whilst not actionable misrepresentations, may carry with them implied representations of fact. There are also occasions where silence can give rise to an actionable misrepresentation.

When considering whether a misrepresentation is actionable the context in which it was made is key.

Contact a Waco Texas or Central Texas misrepresentation lawyer below or call 254-753-6437 to discuss your matter.