Misrepresentation in contract law.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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In general, misrepresentation in the creation of a contract is grounds for the contract to be deemed unenforceable.  In other words, a person who has been misled by a misrepresentation is not obligated to adhere to the terms of the contract.

In order for the contract to be unenforceable, the misrepresentation must related to an important part of the contract.  It must be made in order to induce the other party to sign the contract.  Furthermore, the misrepresentation must be such that it would induce a reasonable person to enter into the contract where they would not have entered the contract had the truth been told.

So, a contract is unenforceable if a party to the contract misrepresents an important part of the contract in such a way that it causes the other party to enter the contract.

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