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