The Indian Contract Act's Section 18 defines "misrepresentation" as including the following: "Misrepresentation is a false statement that is made by a person-
There is no desire to mislead anyone or gain an advantage by doing so.
Therefore, a misrepresentation is a false statement that is made without the aim to deceive the other party but with the genuine belief that it is true.
Example. A sells his sound horse to 8 and makes such claim. In actuality, though, A is unaware that the horse is unsound. B finds out later that the horse is unhealthy. This situation involves misrepresentation.
Criteria for Misrepresentation
If a misstatement meets the following criteria, it is relevant:
1. It must be an accurate depiction of a relevant fact. Misrepresentation is not a result of merely expressing a viewpoint.
2. It has to be submitted prior to the other party signing the contract.
3. The contract must have actually been followed.
4. It must be incorrect, but the author sincerely believes it to be true.
5.Deceiving the other party should not be the goal.
Repercussions of Misrepresentation
The party who was misrepresented might file a claim by
1.cancel or revoke the agreement,
2. Accept the contract subject to the representation being accurate.
