Fraudulent misrepresentation is a serious matter that can cost businesses time, money and other valuable resources. When Illinois businesses suffer harm as a result of fraud in their business dealings, they may have remedies to recoup their losses and cut ties with the entities that caused them harm. This post will offer some information on the legal topic of fraudulent misrepresentation, but readers should seek formal legal advice for getting answers to their specific legal questions.
As readers of this blog may know, contracts form the backbone of most business relationships. Contracts involve offers, acceptances, negotiations and require performance in order for them to be completed. If fraud is introduced at any point in the creation of a contract, fraudulent misrepresentation may cause one of the parties to it harm.
A fraudulent misrepresentation is one in which the person who states it knows it is false or makes it recklessly without finding out if it is false. If that misrepresentation is material to the agreement and the victim-party relies on it to their detriment, the matter may become legally actionable. Minor mistakes and errors in contract negotiations that do not impact the overall success of the agreements may not arise to actionable misrepresentations.
When a victim learns of a fraudulent misrepresentation in one of their business agreements or dealings, they should reach out to their trusted business litigation attorneys. Fraud can be an expensive problem for a business to overcome and no business should have to pay for the mistakes and malfeasance of others. Legal support may be necessary to make a victim whole and stop the harm that the misrepresentation imparted upon them.