Nashville, TN – In some business deals, a party to a contract or agreement is not diligent in verifying the terms, or they have no intention to ever meet their obligations as written. This can be a situation involving either negligent or fraudulent misrepresentation. Under Tennessee law, a claim for misrepresentation must show that the information supplied was false, the plaintiff relied on the information, and the defendant did not exercise reasonable care in supplying the information.
There are consequences for companies or individuals who engage in these kinds of practices, as they can be sued, as well as other forms of harm that can come in things like reputational damage. An experienced business attorney should always be consulted for more specific information about any given contract and how doctrines related to misrepresentation may be applied.
Voiding the contract
In a situation where a court finds that material elements of the contract have been misrepresented, it is possible that the agreement will be voided and neither party will need to follow its terms. This is also called rescission in a formal setting. The reason for making the contract voidable is that the party generally would not have been misled into the contract except for the misrepresentation. Such a remedy allows the party who was deceived to move on without any further obligation or wasted resources.
One of the most common remedies in any civil lawsuit is for the plaintiff to be awarded compensation that was caused by the defendant’s actions. In any situation involving a contract, if one party relies on the terms as written and loses profits or revenue from the misrepresentation, the defendant in the lawsuit may need to pay out these losses as various kinds of damages. This can include things like actual recorded losses as well as certain types of projected future losses that can be anticipated from the breach of the contract. Damages should be specific to the deal in question and any financial problems caused by the fact that the agreement could not be completed.
Advice from business lawyers in Nashville
The Law Office of George R. Fusner is a business law practice that helps people in the area of Nashville and nearby parts of Tennessee. Those who are interested in seeing if a lawsuit is necessary can meet with their attorneys and learn more about misrepresentation and other business law issues.
USAttorneys.com is a service that provides information about getting in touch with local lawyers in any city or state in the country. Anyone who is searching for an attorney in their area can call 800-672-3103 for a referral.
Firm contact info:
7104 Peach Court, Brentwood TN 37027
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