What is financial misrepresentation?

Misrepresentations in financial statements are commonly referred to as financial statement fraud. Financial statement fraud usually involves the overstating of assets, revenues and profits and the understating of liabilities and expenses.

What are the remedies for misrepresentation?

The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages.

What do you need to prove for misrepresentation?

To prove a claim in misrepresentation, a Claimant must show that the Defendant made an untrue statement of fact that induced the Claimant to enter a contract, thereby causing the Claimant loss.

What do you call a misrepresentation in a financial statement?

Misrepresentations in financial statements are commonly referred to as financial statement fraud.

What are the different types of misrepresentations?

A misrepresentation is an untrue statement made to induce another party’s decision related to a contract. A defendant accused of misrepresentation may be charged with failure to act in good faith and according to the reasonable standards of fair contract negotiations.

What is a misrepresentation of a material fact?

Updated Mar 16, 2018. A misrepresentation is a false statement of a material fact made by one party which affects the other party’s decision in agreeing to a contract. If the misrepresentation is discovered, the contract can be declared void and, depending on the situation; the adversely impacted party may seek damages.

What happens if a misrepresentation is made in a contract?

If the misrepresentation is discovered, the contract can be declared void and, depending on the situation; the adversely impacted party may seek damages. In such a contract dispute, the party that made the misrepresentation becomes the defendant, and the aggrieved party is the plaintiff.

What is financial misrepresentation? Misrepresentations in financial statements are commonly referred to as financial statement fraud. Financial statement fraud usually involves the overstating of assets, revenues and profits and the understating of liabilities and expenses. What are the remedies for misrepresentation? The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the…