When you enter into a contract, you engage in bartered exchange. For the contract to be legally binding, then, there must be a meeting of the minds. But what happens when the other side seemingly tricks you into agreeing to a contract that turns out to be based on false premises?
Here, you must consider whether you’ve been subjected to fraudulent misrepresentation. And, if you have, you need to start thinking about taking legal action, as there really was no meeting of the minds when you executed the contract in question.
What is fraudulent misrepresentation?
In the contractual context, fraudulent misrepresentation occurs when one party to the agreement knowingly or recklessly misrepresents or lies about facts related to the contract, and you rely on those representations when agreeing to the terms of the contract. Your reliance on the misrepresentations and your agreement to the contract must also result in some type of harm that you can recover through legal action.
How do you prove fraudulent misrepresentation?
The trickiest part of proving fraudulent misrepresentation is showing that the other party either intentionally made false or misleading statements, or that they made those statements with a reckless disregard for the truth.
To prove intent, you may have to analyze communications that you’ve had with the other party and secure testimony from witnesses who knew the other party’s motivations.
This is why the discovery process is often key in these cases. So, be thorough in gathering records, talking to witnesses, and deposing those who may need to testify at trial.
Seek accountability when you’ve been impacted by a breach of contract
You can’t let another party get away with breaching a contract. If you do, you essentially endorse their behavior, which could lead them to try to cheat you and others again. You need to protect your bottom line and your business’s reputation, which is why aggressive legal action in these matters is crucial.