How does misrepresentation differ from a breach of contract?
A) Misrepresentation refers to statements made prior to entering into a contract.
B) Misrepresentation must be intentional in order to be actionable.
C) Misrepresentation only applies if the parties are in a relationship of utmost good faith.
D) Proof of misrepresentation alone is insufficient for the courts to rescind a contract.

Question

Quizplus · Accepted Answer

Misrepresentation involves false statements made before a contract is entered into, which induce the other party to enter into that contract. It does not necessarily have to be intentional (it can also be negligent or innocent) and does not only apply to relationships of utmost good faith (it can apply in various contractual contexts). Proof of misrepresentation can be sufficient for a contract to be rescinded, depending on the circumstances and the type of misrepresentation.

How Does Misrepresentation Differ from a Breach of Contract