A misrepresentation can occur where one party to a contract makes a false statement of fact to the other, which the other relies on. 

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There are three types of misrepresentations—innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation—all of which have varying remedies.  Misrepresentation applies only to statements of fact, not to opinions or predictions.  A misrepresentation occurs where a false statement of a material fact is made by one party to a contract which affects the counter-party’s decision to enter into the contract.  

One of the remedies for misrepresentation in connection with the making of a contract is that the party who relied on the false statement can get damages for his/her/its loss.  Another remedy, rescission (putting things back to how they were before the contract began) may be available; however, it will not be awarded where it is not possible or too difficult, and the court can award money damages instead.

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Sources: https://www.supremecourt.gov/

https://www.merriam-webster.com/legal/misrepresentation

https://www.investopedia.com/terms/m/misrepresentation.asp