Chances are, if you are a consumer, at some time in your life, you may have been a victim of misrepresentation. If you haven't already, you likely will be. Whenever an individual consents to enter an agreement with a third party for the provision of services (or a product), they open themselves to the possibility of misrepresentation. One must always be wary. In return for signing a contract or agreeing to something in general, always understand exactly what goods or services will be provided and know what you're agreeing to.
Let's take a look at misrepresentation and what can be done about it.
What is Misrepresentation?
What exactly is misrepresentation? Before a contract is signed, negotiations take place. The reason for signing a contract in the first place may be because something in particular induced you to do so. If an untrue statement was made during negotiations (by the other party), or a law was broken, they misrepresented themselves and or the deal. If you lost money because of this, you have been a victim of misrepresentation.
To prove a case for misrepresentation, you must be able to show that, had the promise or untrue comment not been stated, you never would have entered into the agreement. If, regardless of that particular statement, you would've entered the deal anyway, you will not be able to make a claim for misrepresentation.
You may also be expected to prove that, during the course of negotiation, the representing party made the remarks with the expressed purpose of enticing you into the agreement.
The following are different types of misrepresentation:
- Innocent misrepresentation
- Negligent misrepresentation
- Fraudulent misrepresentation
Are You a Victim?
Should you be able to prove a case for misrepresentation, there are a couple of possibilities that you can pursue:
- Award of damages – You may decide to seek damages if you feel you've been a victim of misrepresentation. What will the level of damages awarded be based upon? Ordinarily, whatever it takes to get the victim back into the situation they would originally have been in before the agreement will be pursued.
- Rescission – That's a fancy word for bringing the contract to an end. In this case, all participants will be restored to their prior position precontract.
Be Aware of Clauses
It seems like the best fraudsters and scammers will always find a way around the law. Clauses that could possibly take representation claims and reduce the liability of the presenter are as follows:
- Restriction of remedies
- Express exclusion of liability
- Non-reliance statement
Weltz Law and Misrepresentation Victims
At Weltz Law, we are dedicated to helping those taken in by scams, schemes, frauds, and cheats. Though these people have been around for centuries, with advanced technology and the Internet, it's easier than ever for them to find willing participants. Sadly, many investors end up losing money they've been saving for years.
If you feel that you have been a victim of misrepresentation, please feel free to contact us today for a free consultation.