Fraud & Misrepresentation

Fraud is a false statement made either knowingly or recklessly. Fraud is a valid ground for the nullification or rescission of a contract. A misrepresentation differs from fraud in that it concerns merely a statement of something that is taken to be fact that is not true. The difference lies in that fraud requires a certain immoral stance or intent.

Fraud & misrepresentation

A misrepresentation may occur negligently or innocently, and it may be made in the course of negotiations or be contained within the contract itself.

In Canadian contract law there also exists the concept of fraudulent misrepresentation, which relies on the fact that (1) a representation was made; (2) that representation was false; (3) the representation was made knowingly or recklessly; (4) it was made with the intention of the plaintiff relying on it; (5) the plaintiff relied on it, and (6) the plaintiff suffered damages resulting from the fraudulent misrepresentation.

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