Legal Definitions - fraudulent misrepresentation

Fraudulent misrepresentation is a type of legal claim that usually arises in contract law. It happens when a person intentionally or recklessly makes a false statement or opinion with the intention of making someone else do something or not do something based on that false information.

To determine if fraudulent misrepresentation occurred, the court will look for six factors:

1. A representation was made
2. The representation was false
3. The defendant knew the representation was false or made the statement recklessly without knowing if it was true
4. The fraudulent misrepresentation was made with the intention that the plaintiff rely on it
5. The plaintiff did rely on the fraudulent misrepresentation
6. The plaintiff suffered harm as a result of the fraudulent misrepresentation

The usual remedy for fraudulent misrepresentation is damages.

For example, if a car salesman tells a customer that a car has never been in an accident when it actually has, and the customer buys the car based on that false information, the customer could sue the car salesman for fraudulent misrepresentation.

Another example could be a contractor who tells a homeowner that they are licensed and insured when they are not, and the homeowner hires them based on that false information. If the contractor does a poor job and causes damage to the home, the homeowner could sue the contractor for fraudulent misrepresentation.

These examples illustrate how someone can be held accountable for intentionally or recklessly providing false information that causes harm to another person.