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A primer of fraudulent misrepresentation

| Dec 30, 2020 | Uncategorized |

Businesses run on contracts. These agreements set expectations and ensure steady supply chains and smooth transactions. In order for contracts to operate the way they are intended, though, all parties to the agreement have to be open and honest. When one party to a contract lies or misrepresents certain information, significant harm can be caused to the other side. These damages might be financial in nature, and significantly so, but they can also affect a business’s goodwill and reputation.

A closer look at fraudulent misrepresentation

If you think that you were duped into a contract based on false or misleading information, then you need to know where you stand from a legal point-of-view, as you might be able to recover compensation for the harm that was caused to you. Before you can succeed on a fraudulent misrepresentation claim, though, you have to prove certain legal elements. Here are some of them:

  • A representation was actually made: You have to demonstrate that the other party actually displayed some sort of act, conduct, or statement that asserted a fact.
  • The representation was false or misleading: This is pretty straightforward, but you have to know the truth before you can prove this element.
  • The party knew the statement was false: In order to succeed on a legal claim, you’ll have to show that the party who made the representation either knew that it was false or they made the representation in a reckless manner with disregard for what the actual truth may be.
  • Detrimental reliance: Perhaps the biggest aspect of one of these claims is detrimental reliance. This means that you have to show that the other party made a misrepresentation with the intention of causing you to rely on it, and that your reliance on that representation caused you harm. This is also where you’ll want to show the full extent of the damages caused to you.

Don’t leave your case to chance

Fraudulent misrepresentation cases are highly fact specific, meaning that you can’t take a one-size fits all approach. Instead, you’ll want a legal strategy that is tailored to suit your needs. If you’re looking for that type of representation, then you might want to consider reaching out to an attorney who is experienced in business litigation.