Also known as: material misrepresentations · materially misrepresent · materially misrepresented · material misrep
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A false statement that is likely to induce a reasonable person to assent or that the maker knows is likely to induce the recipient to assent. The statement must induce justified reliance by the recipient to render the contract voidable.
A false statement that is likely to induce a reasonable person to assent or that the maker knows is likely to induce the recipient to assent. The statement must induce justified reliance by the recipient to render the contract voidable.
Select any source to read its text and confirm it supports the definition.
A false or misleading communication about a lawyer or the lawyer's services that contains a misrepresentation of fact or law or omits a fact necessary to prevent the statement from being materially misleading when considered as a whole.
Select any source to read its text and confirm it supports the definition.
A false or misleading communication about a lawyer or the lawyer's services that contains a misrepresentation of fact or law or omits a fact necessary to prevent the statement from being materially misleading when considered as a whole.
Each sense below has its own examples, sources, and questions.
Metro’s director understated member ages and loss history to obtain favorable terms from Summit Insurance. Summit discovered the statements and rescinded the master agreement. Lopez, a member who applied for coverage, could not enforce benefits because the underlying contract was voidable from formation.
Aurora Colors labeled its solvent-based paints as fume-free and safe for indoor studio use without ventilation. Lena relied on the label and worked for hours in an unventilated room. The resulting respiratory injury followed directly from her justifiable reliance on the public representation.
A state board restricted pharmacists from advertising prices for prescription drugs. Consumer groups challenged the restriction as limiting access to truthful commercial information. The rule suppressed material facts that reasonable consumers would consider important when deciding where to purchase medication.
Scientific Atlanta supplied equipment and made statements about its functionality to investors in a cable company. The investors later claimed the statements contributed to a fraudulent scheme that inflated the company’s value. The statements were not actionable as primary violations because they did not directly induce the investors’ purchases.
A misrepresentation is material if it would induce a reasonable person to assent or if the maker knows it is likely to induce the particular recipient to assent for a special reason. The recipient must also show justified reliance on the statement.
Supporting sources
Yes. A beneficiary’s rights are derivative and subject to any infirmity that makes the contract between the promisor and promisee voidable at formation. Rescission by the defrauded party eliminates the duty the beneficiary seeks to enforce.
Supporting sources
Yes. A commercial seller who makes a material factual representation to the public about a product’s character or quality can be strictly liable for physical harm caused by a consumer’s justifiable reliance on that representation.
Supporting sources
Griffin’s firm ran an online ad stating it was the only firm in the city certified to handle complex software patent disputes. Other firms in the city held comparable credentials from different bodies. The claim created an impression of unique qualification that a reasonable prospective client could find material when selecting counsel.
The communication is false or misleading if it contains a material misrepresentation of fact or law or omits a fact necessary to keep the statement as a whole from being materially misleading. Responsibility rests with the lawyer even when an advertising agency drafts the language.
Supporting sources
…a reasonable jury could find, by clear and convincing evidence, each essential element of Step-Saver's fraud claim: (1) a material misrepresentation; (2) an intention to deceive; (3) an intention to induce reliance; (4) justifiable reliance by the recipient upon the representation; and (5) damage to the recipient proximately caused by…