Misrepresentation in Contract Law

In this blog we are going to look on misrepresentation in contract law.

Misrepresentation or Deception is a false statement of contractual facts. 

Misrepresentation is defined in Section 18 of the Indian Contract Law. Misunderstanding is a false or false statement of law or fact that misleads one  party  into a contract or contract. 

• A false statement of truth that influences the decisions of other parties regarding the contract. 

• False statements can invalidate the contract and, in some cases, allow the other party to seek compensation. 

• Misrepresentation, regardless of size, is the basis for breach of contract in a transaction. 

• Misrepresentations apply only to factual statements, not  opinions or forecasts. 

Types of Misrepresentation  

There are three types of misrepresentation  in the contract. 

• Fraudulent Misrepresentation: it occurs when a misrepresentation is  made intentionally, without believing in the truth, or recklessly believing in the truth. The injured party may request that the defendant cancel the contract and claim damages. 

• Misrepresentation negligence: Misunderstanding due to negligence in the sense of misleading law exists when one contracting party declares to another contracting party the negligence or without good reason to infer its truth. Legal remedies for negligent fraud are withdrawal from the contract and, if necessary, compensation. 

• Misrepresentation of Innocence: Misrepresentation due to one’s own negligence is sometimes referred to as harmless misrepresentation. This is usually remedied by withdrawing or canceling the contract.

Stay tuned for more information to be shared on this legal blog.