A false statement of fact made during contract negotiations must always be intentionally deceptive to constitute actionable misrepresentation.
False
True
The correct answer is false. Misrepresentation in contract law does not always require an intentional act. A statement can constitute actionable misrepresentation if it was made negligently (when the party fails to exercise reasonable care in verifying the truth of the statement) or even innocently (when the party honestly but mistakenly believes the statement to be true). Fraudulent misrepresentation specifically requires intentional deceit and allows for both rescission of the contract and possible damages. The incorrect assumption that all misrepresentation requires intent disregards the broader circumstances under which a false statement may still significantly impact a contract’s enforceability.
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