Fraud / Misrepresentation

“What constitutes fraud? Exactly what is misrepresentation? Sometimes it can be how a written or oral agreement is interpreted. Or there could have been mistakes made on the part of the agent or person writing the contract. And then there are the egregious false and misleading statements.”

Several of our cases have involved fraud or misrepresentation in business dealings. Below are definitions of the three most common defenses raised in regard to these business dealings. If you have these concerns about your business dealings, Janet, Jenner and Suggs will review your information at no cost to help determine if you have a case.

Misrepresentation

Misrepresentation is a false or misleading statement made about a present or past agreement with the intent to deceive someone. A misrepresentation is interpreted as an innocent misstatement of a fact. In the case of a misrepresentation, the injured party may be able to cancel the contract.

Fraud

Fraud is a deliberate misstatement of a fact. It is defined as the use of deceit or some dishonest means to deprive another of money or secure unlawful gain. In the case of a fraud, the injured party may cancel the contract and sue the wrongdoer for damages. Frequently, a case will contain both fraud and misrepresentation.

Mistake

Mistake occurs where one or both parties to the contract believe a fact to be true when it is not true. A unilateral mistake occurs when one party makes a mistake, and this, generally, does not invalidate the contract because negligence or inadvertence are not excuses. If both parties to a contract make a mistake, the error is called a bilateral mistake. This type of mistake generally voids the contract because there was no mutual agreement.

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