Misrepresentation is when someone lies about an important fact to convince someone else to enter into a contract. It often happens in real estate and insurance. To prove misrepresentation, the plaintiff must show that the defendant made a false statement, intended for the plaintiff to rely on it, and that the plaintiff was harmed as a result.
Misrepresentation is a type of tort that a defendant can be charged with in a civil action. It typically occurs when a person misrepresents a material fact in order to persuade another person to enter into a contract or other agreement. For example, if a real estate agent tells a prospective buyer that a home has new plumbing, when the plumbing is actually 30 years old, the agent could be liable for misrepresentation. Misrepresentation commonly occurs in cases of false advertising, insurance claims, and real estate contract lawsuits. When a misrepresentation occurs in a contract case, the contract is usually voided and monetary or equitable compensation can be awarded to the injured party.
In general, a plaintiff must prove five elements to be successful in a perjury lawsuit. First, the plaintiff must prove that the defendant made a false statement of material fact. Statements that merely express an opinion are usually not considered misrepresentations of fact. There are however some exceptions to this rule. For example, an opinion expressed by an expert to a non-expert or a fiduciary may be considered a misrepresentation of fact.
Subsequently, the plaintiff must prove that the misrepresentation was willful or negligent. An intentional or fraudulent misrepresentation occurs when a defendant knows that he or she has misrepresented a material fact. A negligent wrong occurs when a defendant fails to use reasonable care in making a statement. In other words, the defendant is negligent if he should have known that his statement was false.
The third element that must be proved is that the defendant intended the plaintiff to rely on the misrepresentation. For example, suppose an insurance company tells a potential customer something untrue to get them to take out an insurance policy. The intent would be present in this situation because the insurance company has made the representation to sell the policy.
For the fourth element, the plaintiff must normally demonstrate that he legitimately relied on the defendant’s statement. The factual circumstances surrounding the case as well as the personal qualities and characteristics of the plaintiff may be taken into account in determining justified custody. A mentally incompetent plaintiff would likely have a lower threshold than a more experienced plaintiff. Finally, the plaintiff must prove that he was harmed by the misrepresentation.
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