What types of misrepresentation can occur in contract cases in Nashville?

Nashville, TN – Contract terms are important because they can have very real effects on the outcome of a deal. This includes things like the duration of the contract, the amount of money involved, construction of property, and the obligations of each party to the deal. Serious problems can occur when there is a false statement contained within the contract terms, which is also known as misrepresentation. There are three main types of misrepresentation that can occur, and all of them have various legal remedies available to the party affected by the misrepresentation. Anyone who is having these kinds of contract law issues can meet with a business attorney in Tennessee to get specific advice regarding how to proceed with a contract lawsuit or other related matters. 

Negligent misrepresentation

Negligence is a legal concept related to not meeting the appropriate standard of care for a given situation. Negligence can happen during the process of drafting and negotiating a contract.  A party is usually considered negligent in contract formation if they made no attempt to check the truth of the statements contained in the document. This failure to ensure the veracity of the contract terms is considered negligence as a matter of law. 

Fraudulent misrepresentation 

In order for any of the terms or information in a contract to be considered fraudulent, there must be a finding of one out of two possibilities. First, that the statement was made recklessly by the defendant without any regard for the truth of the matter, or that the defendant knew that the terms were false, but put them in the contract anyway. There will be monetary damages available to the plaintiff in most cases where they can show the defendant committed fraud.

Innocent misrepresentation

If a party to the contract made a mistake regarding the truth of a term where they either believed the statement was true, or were unaware that it was false, then they have committed innocent misrepresentation. In these situations, it may be difficult to complete the terms of the contract as intended, so a court will usually cancel or void the contract.  


There are various things a court may do when they find one of these types of misrepresentation within the contract documentation. One possible remedy is to void the contract entirely and let the parties walk away from the deal. Compensation for all losses associated with the problematic contract is another possibility. This kind of compensation is known as damages, and the plaintiff can show what specific losses they sustained due to the defendant’s actions, then try to make the defendant pay for all of them. Specific performance of contract terms is also enforced in some situations where it is difficult to substitute money for the subject matter of the contract, such as a property transaction

Help with contract disputes

The Law Office of George R. Fusner provides assistance to anyone who needs help with business law matters. 

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027



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