It means false representation of facts made innocently or non-disclosure of material fact of contract without any intention to deceive the other party.
Example of misrepresentation:
Karl wants to shop for a house within the Salt Lake town space of Mormon State. Karl contacts John, a realtor, and arranges to ascertain many homes that square measure on sale. When selecting out the house he likes, Karl asks the possessor if the house includes insect downside. The house will have an insect downside however the owner, knowing that Karl won’t obtain the house if he is aware ofconcerning the insect downside, tells Karl that there’s no insect downside. Karl and also the owner sign a contract underneath that Karl can obtain the house for $250,000. When the contract is signed, Karl finds out concerning the insect downside. during this case, the contract are going to be revocable by Karl as a result of the owner created a fallacious deception that Karl relied on and, supported that deception, Karl entered into the contract.
Arham Want to sell his car and also knows that there is problem in the engine of the car but yet he sold the car by making misrepresentation that car is in perfect mechanical condition. Here he makes fraudulent misrepresentation.
If a true agent is merchandising a property that contains a major defect like injury to the inspiration, the owner could have told the agent that nothing is wrong with the house. The agent contains a responsibility to form certain the owner is telling the reality before representing the house as being freed from defects to potential patrons. This might be thought of negligent false statement.
A marketer who tells a customer that a stereo is spanking new, once in reality it’s five years old and has been utilized by different homeowners, this could represent an innocent false statement if the vendor was unaware of the stereo’s history.