Can You Sue A Company For Misrepresentation?

Can you sue a company for misleading information?

Yes, you can sue for false advertising.

Many states have a specific false advertising law that gives consumers the right to sue businesses for misleading them into purchasing or paying more for the company’s goods or services..

What are some examples 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.

Is misrepresentation a crime?

Misrepresentation can be both a civil wrong (a tort) or a criminal wrong. If the misrepresentation rises to the level of fraud, a defendant can face serious legal consequences. Misrepresentation can occur in the creation of contracts and in many different industries.

What are the two types of misrepresentation?

There are two types: negligent misrepresentation and innocent misrepresentation.

What are the remedies for misrepresentation?

If a misrepresentation is relied upon in entering a contract, a person can: seek to rescind (cancel) the contract; or. sue for damages to compensate for any loss.

How can I stop misrepresentation?

Misrepresentation What Is It and How to Avoid It When Selling a BusinessWork with an experienced broker. … Don’t try to hide major flaws. … Be as transparent as possible with the books. … Have a lawyer look over your listings and agreements.More items…

What is the law on misrepresentation?

Under contract law, a plaintiff can recover compensatory damages against a defendant when a court finds that the defendant has committed fraudulent misrepresentation. … that when made, the defendant knew that the representation was false or that the defendant made the statement recklessly without knowledge of its truth.

How do you prove misrepresentation?

To prove fraudulent misrepresentation has occurred, six conditions must be met.A representation was made. … The claim was false. … The claim was known to be false. … The plaintiff relied on the information. … Made with the intention of influencing the plaintiff. … The plaintiff suffered a material loss.Oct 3, 2016

What are the 3 types of misrepresentation?

There are three types of misrepresentations—innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation—all of which have varying remedies.

What are the requirements of misrepresentation?

A statement made without any reasonable basis is an unwarranted statement. When a person makes a positive statement of a fact without any trustworthy source of information and believes that statement to be true, the act amounts to misrepresentation.

How do you prove negligent misrepresentation?

To prove negligent misrepresentation, a plaintiff must demonstrate the following elements:The defendant made a representation in a contract;The representation was false;The representation was made either carelessly, or without reasonable grounds to believe it was true;More items…•Jun 4, 2020