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:
- A representation was made
- The representation was false
- That when made, the defendant knew that the representation was false or that the defendant made the statement recklessly without knowledge of its truth
- That the fraudulent misrepresentation was made with the intention that the plaintiff rely on it
- That the plaintiff did rely on the fraudulent misrepresentation
- 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]