fraudulent misrepresentation

Fraudulent misrepresentation is a tort claim, typically arising in the field of contract law, that occurs when a defendant makes a intentional or reckless misrepresentation of fact or opinion with the intention to coerce a party into action or inaction on the basis of that misrepresentation.

To determine whether fraudulent misrepresentation occurred, the court will look for six factors:

  1. A representation was made
  2. The representation was false
  3. That when made, the defendant knew that the representation was false or that the defendant made the statement recklessly without knowledge of its truth
  4. That the fraudulent misrepresentation was made with the intention that the plaintiff rely on it
  5. That the plaintiff did rely on the fraudulent misrepresentation
  6. That the plaintiff suffered harm as a result of the fraudulent misrepresentation

Like most claims under contract law, the standard remedy for fraudulent misrepresentation is damages.

[Last updated in January of 2023 by the Wex Definitions Team]