A contractor approached a business owner who was seeking to renovate their office building. The contractor stated that the materials they would use for the renovations were sourced from a premium supplier known for high-quality products. In reality, the contractor knowingly used substandard materials from a less expensive, lesser-known supplier, resulting in significant structural issues a year after completion of the work. The business owner files a claim of misrepresentation against the contractor. Which of the following elements must the business owner prove to succeed in their claim?
The contractor failed to disclose important information about the materials used during the renovation.
The contractor knowingly made a false statement of material fact, the business owner relied on the statement, and the reliance caused harm.
The contractor intended to cause harm with the false statement and the business owner suffered damages as a result.
The business owner should have conducted an independent investigation instead of relying on the contractor's statements.
For a claim based on misrepresentation, it is necessary to demonstrate that the defendant knowingly or recklessly made a false statement of material fact, that the plaintiff reasonably relied on the misrepresentation, and that this reliance caused actual harm. In this scenario, the contractor knowingly represented the use of premium materials while not intending to use them, and the business owner's reliance on this misrepresentation led to damages. Answers that emphasize only one or two of these elements are incorrect because all elements must be present to establish a misrepresentation claim. Additionally, misrepresentation claims do not require the plaintiff to prove intent to cause harm; intent to deceive is sufficient.
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