What is defined as a false or misleading statement that may be legally actionable?

Misrepresentation is defined as a false or misleading statement that can lead to legal consequences. In legal contexts, misrepresentation occurs when one party makes a statement that is not true, intending to induce another party to enter into a contract or a transaction. If the misrepresentation is proven to be intentional or reckless, the injured party may have grounds to seek damages.

This term is critical in understanding issues of liability in contracts and transactions, as it highlights the responsibility of parties to provide accurate and truthful information when negotiating deals. Affected individuals who rely on the misrepresentation may suffer losses, thereby justifying legal action to remedy the situation.

Unlike negligence, which involves a breach of duty causing harm, misrepresentation specifically focuses on the act of providing false information. Disclosure involves revealing necessary information and is not inherently misleading, while fraud encompasses a broader range of dishonest behaviors, including but not limited to misrepresentation.