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When is someone guilty of fraudulent misrepresentation?

On Behalf of | May 11, 2023 | Fraud

When you enter into a contract with someone, you expect them to abide by the terms they’ve agreed to. If they fail to do that and you or your business suffers harm as a result, you can sue them for breach of contract.

You may also (or instead) be able to take legal action if they misrepresented themselves. Maybe a contractor you hired to renovate your offices claimed to be licensed, but their license had been revoked. Perhaps your restaurant brought on a new produce vendor that failed to disclose that their lettuce was about to be recalled after an outbreak of E. coli. These are just a couple of examples of dishonest behavior that falls under the umbrella of “fraudulent misrepresentation.” 

Fraudulent misrepresentation can involve lying about something that’s material (relevant) to the terms of the contract or not disclosing something relevant. It can also encompass being less than fully transparent and honest (either verbally or in writing). 

What is necessary for a fraudulent misrepresentation suit?

To be able to file a fraudulent misrepresentation suit, you do need to show that you suffered harm. You also need to show that the misrepresentation was intentional. 

Generally, plaintiffs in fraudulent misrepresentation cases seek to first void the contract, which means they owe no money and get the money they paid back. They also typically seek damages to recover any money they spent or business they lost as a result of the misrepresentation. Depending on the circumstances, it may also be possible to seek exemplary or punitive damages.

If you believe you have been the victim of fraudulent misrepresentation or any other type of fraud, you should seek experienced legal guidance sooner rather than later so you can review your options and work toward the best possible resolution.

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