What is a misrepresentation?

What is a misrepresentation?

• A. A true statement about job
• B. A false statement expressed during negotiation
• C. A statement after negotiation
• D. A promise of a raise

Answer: (B)

Misrepresentation is a false statement of fact that is made during negotiations and leads the other party to enter into the contract. It has to be a factual assertion about something present or past (not just an opinion or a promise about the future), it must be communicated, and the other party must rely on it when agreeing to the terms. Because of that, the option describing a false statement expressed during negotiation best fits misrepresentation: it captures both the timing (during negotiation) and the nature (false factual claim) needed to induce the contract. The other options don’t fit: a true statement isn’t misrepresentation; a statement after negotiation isn’t the false pre-contract assertion that forms the contract; and a promise of a raise is a future promise, not a false factual claim about the job.

Misrepresentation is a false statement of fact that is made during negotiations and leads the other party to enter into the contract. It has to be a factual assertion about something present or past (not just an opinion or a promise about the future), it must be communicated, and the other party must rely on it when agreeing to the terms. Because of that, the option describing a false statement expressed during negotiation best fits misrepresentation: it captures both the timing (during negotiation) and the nature (false factual claim) needed to induce the contract. The other options don’t fit: a true statement isn’t misrepresentation; a statement after negotiation isn’t the false pre-contract assertion that forms the contract; and a promise of a raise is a future promise, not a false factual claim about the job.