What does misrepresentation in contract law refer to?

Misrepresentation in contract law refers to a false statement or omission made by one party that induces another party to enter into a contract. This falsehood can be a deliberate lie, a mistake, or even an omission of vital information that leads the other party to agree to the contract under false pretenses. In legal terms, misrepresentation can render a contract voidable, allowing the affected party to rescind the contract or seek damages.

Understanding this definition is crucial in distinguishing misrepresentation from other contract-related concepts, such as legal remedies or negotiation tactics. Legal remedies typically deal with the consequences after a breach has occurred, rather than with the misleading statements made during the contract formation. Inherent unfairness in a contract, while potentially related to concerns over misrepresentation, is a distinct concept where the overall terms of the agreement are unreasonably favorable to one party. Lastly, negotiation tactics are strategies employed to persuade or influence the other party, which does not inherently involve dishonesty or falsehoods that characterize misrepresentation.