A well-negotiated contract can put your mind at ease while ensuring that you have business operations that fall in line with your vision. In other words, they can provide you with a significant amount of protection. This is especially true because the parties to a contract are open, honest, and transparent, right? Not always. In fact, fraudulent misrepresentation occurs all the time in the business world.
What constitutes fraudulent misrepresentation?
If you’ve seen a contract go sideways against your expectations, or if you’ve been accused of duping someone into a contract, then you need to know the basic legalities of misrepresentation in the contract context. There are some key elements of a misrepresentation claim that must be proven in order to succeed at trial on one of these claims. First and foremost, you have to show that a false or misleading statement or representation was actually made. From there, it’ll have to be shown that the party that made the statement either knew that the statement was false or it had a reckless disregard for the knowledge of the truth.
But that’s not all that’ll have to be shown. Intent and detrimental reliance are also key. So communications and other external documents might be critical to showing that the party that made the statement did so with the intent of enticing the other party to agree to the contract. Financial records and other contracts that were offered at the time might help show detrimental reliance.
Be prepared to address every aspect of your case
There are a lot of nuances to contract disputes. That’s why it’s imperative that you know the law and how to apply it to your circumstances. Only then can you rest assured that you can appropriately address every aspect of your claim and protect your business interests. Fortunately, experienced legal teams like ours stand ready to assist businesses in building the legal arguments they need to maximize their chances of reaching a favorable outcome.