Define the term misrepresentation

Question

Define the term misrepresentation?

Answer 1

Misrepresentation occurs when one party induces another party to enter into an agreement by making a material pre-contractual statement of fact that is false. A pre-contractual statement is material if a reasonable person would consider the fact relevant to the decision to enter into agreement. It is an encouragement if there is a fundamental connection between the statement of fact and the person’s decision to enter into agreement, even though it doesn’t have to be principal reason.