A misrepresentation can occur where one party to a contract makes a false statement of fact to the other, which the other relies on.
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.
Do not hesitate to contact the attorneys at Tishkoff if you have questions regarding litigation, or business or employment law.