Contractual relationships are based, in part, on trust and transparency. After all, both parties agree to perform certain duties and adhere to certain obligations for the benefit of the other party. But what happens when you enter into a contract based on false or misleading information? In those instances, you may have a claim for fraudulent misrepresentation.
Proving fraudulent misrepresentation
In order to succeed on one of these claims, you’ll have to meet certain legal elements. Let’s look at them here.
- The other party made an actual representation of fact
- That representation turned out to be false or misleading
- The party that made the representation knew that the information being provided was false or it had a reckless disregard for its veracity
- The representation was made with the intent of having you rely on it
- You actually did rely on the false information when deciding to enter into the contract
- You suffered financial harm as a result of that detrimental reliance
Those elements may sound easy enough to prove, but each one can carry its own complexities. For example, although you may be able to show that the representation was false, it may be more challenging to prove that the defendant made that statement with the intent that you would rely on it. This is where strong legal work, such as by subpoenaing records and conducting deposition, could prove useful.
Don’t let your contract disputes get the better of you
An improperly handled contract dispute can cause extensive damage to your business’s reputation and its financial stability. That’s why it’s important that you know how to competently address these matters. When it comes to fraudulent misrepresentation, an attorney may be able to help you gather the evidence that you need to prove every element and succeed on your claim. To learn more about how an attorney can help you do that, please consider reaching out to an advocate who is right for you.