What does fraudulent misrepresentation mean in contract law?

Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract. A defendant commits fraudulent misrepresentation when he or she lies or misrepresents an important fact about in order to cause or induce the other party to enter into a contract.

What are the six elements of fraudulent misrepresentation?

Elements of Fraudulent Misrepresentation. For a plaintiff to prevail in a lawsuit for fraudulent misrepresentation, she must prove six elements: A representation was made; The representation was false; The representation was known to be false or made recklessly without knowledge of its truth at the time it was made;

What makes a representation to be a misrepresentation?

In order for a representation to become a misrepresentation, it must be first proven that it was an unambiguous, false statement of fact. In order to prove this misrepresentation is actionable, it must be shown that this representation induced the claimant to enter the contract.

When is a false statement not actionable misrepresentation?

However, if a person knows that his promise, which has induced another to enter into a contract, will not in fact be carried out then he will be liable. A false statement as to the law is not actionable misrepresentation because everyone is presumed to know the law. However, the distinction between fact and law is not simple.

What makes a representation false in contract law?

A representation was made (in contract law, a representation is any action or conduct that can be turned into a statement of fact). The representation was false. The representation, when made, was either known to be false or made recklessly without knowledge of its truth.

When is a representation a fraudulent misrepresentation?

Even if the representation was made without knowledge of whether it was true, it can give rise to a fraudulent misrepresentation claim if it was made in a reckless way. In such instances, the party making the representation is acting recklessly solely to induce the other party into the contract.

Can a person Sue an employer for misrepresentation?

The employer made an intentional misrepresentation of a fact; The misrepresentation was material to the decision to accept or continue employment; They reasonably or justifiably relied on the misrepresentation; and. They suffered some injury.

When is an employment misrepresentation intended to do the opposite?

employment misrepresentations intended to do the opposite, that. is, to cause an applicant not to apply for a position, or induce an. employee to resign or retire from employment, not to initiate a. dispute, or to settle some dispute with the employer;7 (5) when an.