Fraudulent Misrepresentation Claim

A fraudulent misrepresentation claim is a legal cause of action that arises when one party intentionally makes a false statement of fact to another party, with the intent to deceive and induce reliance on the false statement. To succeed in a fraudulent misrepresentation claim, the plaintiff must prove that the defendant knowingly made a false representation of a material fact, intending for the plaintiff to rely on it, and that the plaintiff did rely on the false statement to their detriment, suffering damages as a result. Fraudulent misrepresentation claims often arise in business transactions, such as contracts for the sale of goods or services, where one party makes false statements about the quality, condition, or value of the subject matter of the transaction. Successful plaintiffs in fraudulent misrepresentation cases may be entitled to compensatory damages, punitive damages, and rescission of the contract.