ABSTRACT

A misrepresentation is an untrue statement that induces the representee to enter the contract. The statement can be made either before, or at the time of entering the contract. If the statement forms part of the contract, any remedies will be based upon breach of a term. However, if the statement does not form part of the contract, the representee may be able to seek relief based upon misrepresentation itself. A finding of misrepresentation renders the agreement voidable at the option of the representee. In other words, the innocent party can rescind the contract and, depending on the circumstances, claim damages.