Fraudulent, negligent, or innocent misstatement, or an incomplete statement, of a material fact. If a specific misrepresentation induces the other party to enter into a contract, that party may have the legal right to rescind the contract or seek compensation for damages. The guilty party avail of the defense that the wronged party could have checked the facts and have discovered what was wrong. A misstatement of an intention or opinion is generally not considered a misrepresentation.
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