Describe the types of Misrepresentation

Question

Describe the types of Misrepresentation?

Answer 1

There are 3 types of misrepresentation:

1. Innocent: A statement made carefully without knowledge of the fact that it is false Rescission.

2. Negligent: A statement made carelessly without regard to whether it was true or not Rescission plus damages for tort of negligence.

3. Fraudulent: A statement made knowing it was false rescission plus damages for tort of deceit.

Most misrepresentations occur during the bargaining that precedes formation of a contract, but sometimes a misrepresentation becomes incorporated into the agreement itself as a warranty. The remedy for breach of a warranty is contractual damages, and contractual damages may well be a more effective remedy than rescission or even than damages for deceit or negligence.