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The basics of contractual misrepresentation

| Apr 28, 2021 | Uncategorized |

A lot of the strength of your business is probably dependent upon the contracts that you have in place. If you’re adept at negotiating these agreements, then you can position yourself for success by obtaining materials at low costs, locking in consumers at favorable rates, ensuring timely delivery of products, and even protecting your ability to use your commercial property as needed. But not all contracts go as hoped. Far too often one side acts poorly, which could put your business at risk if you don’t take legal action.

Understand contractual misrepresentation

The basis of contract law is that two parties come together with openness and honesty to engage in bartered for exchange. In too many instances, though, one party to a contract makes a false statement of a material fact so that they can secure the contract. This is misrepresentation, which can constitute breach of contract. It’s important to note, though, that mere suggestions, opinions, or predictions don’t constitute misrepresentation.

Misrepresentations can be made innocently, negligently, or fraudulently. Any one of them can affect your contractual rights, which is why you might be able to void the contract and seek damages if you’ve been affected by misrepresentation. You’ll want to keep in mind that in order to achieve that outcome, you’ll have to show that the misrepresentation applies to a material fact, so the false statement has to pertain to some important aspect of your contract.

Secure strong representation in your contract dispute

Breach of contract issues can be highly contentious, especially when there’s a lot of money and someone’s reputation on the line. That’s why you’ll want to consider having strong legal representation in your corner before addressing any breach of contract claims. Our firm is adept at handling these kinds of cases, which is why we encourage those who are facing business law challenges to research our firm to see what we have to offer them in their time of need.