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What is misrepresentation during a business deal in Nashville?

Nashville, TN – Out of all the problems that can happen during a business deal, misrepresentation is one of the most serious. This is when one party to a contract or other deal knowingly makes a false statement of fact about their ability to uphold the agreement. This can result in lost money, lost profits, and additional problems for the business in the future. If a business needs to file a lawsuit against someone who engaged in misrepresentations or other unfair dealings, they can contact a local business lawyer to get more information and start the process to bring the case. 

Negligent versus fraudulent misrepresentation

Negligence is generally defined as some kind of breach of an appropriate standard of care, while fraud is an intentional false statement or misrepresentation that is meant to mislead another party. In a case for negligent misrepresentation, the plaintiff will need to show that the defendant did not exercise reasonable care while supplying false information, and that the plaintiff relied on such information. To meet the elements of fraudulent misrepresentation, the plaintiff needs to establish that the defendant made a statement that was false at the time, either recklessly or with knowledge that it was false. The plaintiff also needs to show that they relied on this false statement and suffered some kind of damages. 

Remedies for misrepresentation

Remedies in business cases tend to attempt to put the parties in the situation they would have occupied if the misrepresentation had not occurred. Some remedies can include rescission of the contract, specific performance of the terms of the deal, and the breaching party paying out damages to the plaintiff for making a misrepresentation. Remedies usually include payment of damages, unless an equitable remedy is necessary. 

Agents who misrepresent business dealings

Sometimes, misrepresentations are made by employees, agents, or other representatives on behalf of a company. In most cases, employers are liable for these actions if the person was engaged in their normal job duties at the time. However, there may be factual issues related to exactly what the person was doing at the time to see if their actions fall within the scope of their employment. If an agent acted on their own accord to make a misrepresentation to another business or client, they may still be sued as an individual if their employer is not liable. 

More information from a business attorney in Nashville

The Law Office of George R. Fusner is available to help local clients in Tennessee with all legal issues that may affect their business. Anyone who needs to schedule a meeting can contact the firm for more information.  

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com

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