law
misrepresentation
Misrepresentation is a false or misleading statement, or a concealment of a material fact, that another party relies on. It can be intentional, which is fraud, or negligent, when the speaker should have known the statement was false. Misrepresentation can make a contract voidable by the injured party and can expose an agent to damages and license discipline. Mere opinion or sales talk, called puffing, is generally not misrepresentation.
- Exam tip
- Intentional misrepresentation is fraud; negligent misrepresentation is still actionable. Puffing ("great view") is opinion, while a false fact ("new roof") is misrepresentation.
- Example
- An agent tells a buyer the basement never floods without checking, and the buyer relies on it; the agent may be liable for negligent misrepresentation.
Related terms & state variants
Sources
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Last verified: 2026-10-23