What is intentional misrepresentation of a material fact in a contract?
(2) In contracts, a false representation of a material fact that is consciously false and is intended to mislead the other party: Also called intentional misrepresentation. The result of an error by both parties about a material fact, i.e., one that is important in the context of a particular contract.
What is an intentional misrepresentation?
intentional misrepresentation. A tort, sometimes known as fraud or deceit, that involves a deceitful or fraudulent misrepresentation or false statement knowingly made by the defendant resulting in monetary loss to the plaintiff.
What is the material misrepresentation?
Abstract. In an insurance contract, a material misrepresentation occurs when the insured makes an untrue statement that: 1) is material to the acceptance of the risk; and 2) would have changed the rate at which insurance would have been provided or would have changed the insurer’s decision to issue the contract.
What is an intentional misrepresentation of the truth or concealment of a material fact?
The term “fraud” is generally defined in the law as an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act. The other person relies on this misrepresented material with resulting injury or damage.
How do you prove material misrepresentation?
The defendant made a material misrepresentation. The defendant had knowledge of the misrepresentation. The defendant intended for the plaintiff to rely on his misrepresentation. There was actual and justifiable reliance on the part of the plaintiff.
What is an example of innocent misrepresentation?
Innocent misrepresentation occurs where a party who made the statement reasonably believed that his or her statement was true. The aim of rescission is to return the parties back to their pre-contract positions. For example, in Keen v. Alterra Developments Ltd.
What is an example of misrepresentation?
In a fraudulent misrepresentation, a party makes a false claim regarding a contract or transaction but knows it isn’t true. For example, if a person is selling a car and knows there is a problem with the transmission, yet advertises it in perfect mechanical condition, they have committed fraudulent misrepresentation.
What does intentional misrepresentation mean in real estate?
Intentional Misrepresentation means a representation made by Seller in Article V hereof or the Seller Disclosure Schedule that was incorrect when made and either (i) made with actual knowledge that the representation was false or (ii) made with reckless disregard for the truth, accuracy or correctness thereof.
What does intentional misrepresentation mean in Delaware law?
Intentional Misrepresentation means intentional misrepresentation under Delaware law (including the requisite element of knowledge or belief that the representation was false or that the representation was made with reckless indifference to the truth).
How is the suppression or omission element related to false representation?
(5) the plaintiff was damaged as a result of his reliance. With respect to the false representation element, the suppression or omission ” ‘of a material fact which a party is bound in good faith to disclose is equivalent to a false representation, since it constitutes an indirect representation that such fact does not exist.’ Nelson v.
What is the essence of a misrepresentation claim?
“the essence of any misrepresentation claim is a false or misleading statement that harmed [the plaintiff].” Nanopierce Techs., Inc. v. Depository Trust & Clearing Corp., 123 Nev. 362, 168 P.3d 73, 82 (2007). Estimates and opinions are not false representations. Commendatory sales talk (puffing) isn’t either.