Please answer the following question in reference to the bllow paragraph.

• Describe the Misrepresentation term and explain why Misrepresentation term is relevant in the workplace or business transactions.

Misrepresentation is a statement or conduct that may be either innocent or fraudulent and that induces a person to enter into a contract. Normally, a person is under no obliga- tion to make any statement that may affect the decision of the other party to enter into the agreement. Any such statement made, however, must be true. Otherwise, it may constitute misrepresentation if it is material (important) to the contract. Additionally, the law recognizes a small group of contractual relationships when the failure to disclose all material facts may also amount to misrepresentation. Misrepresentation does not, how- ever, render a contract void ab initio (from the beginning). Misrepresentation, whether innocent, fraudulent, or by means of non-disclosure, will only render the agreement voidable at the option of the party misled by the misrepresentation.

In every instance, it is important that the injured party cease accepting benefits under the agreement once the misrepresentation is discovered. Otherwise the con- tinued acceptance of benefits may be interpreted as a waiver of the right to rescind the contract. Exceptions have been made to this general rule by both statute law15 and recent cases concerning fraudulent misrepresentation.16 However, the behaviourof the injured party, once the misrepresentation is discovered, is still of paramount importance.

The false statement must be a statement of fact and not a mere expression of opinion. Whether the fact is material or not is determined on the basis of whether the innocent party to the negotiations would have entered into the agreement had they known the true fact at the time. If the innocent party did not rely on the particular fact, or was aware of the falsity of the statement made, then they cannot avoid the contract on the basis of misrepresentation by the other party. rescission is only possible if the innocent or injured party relied on the false statement of fact made by the other party.

Misrepresentation seldom arises out of a term in a contract. It is generally some- thing that takes place before the contract is signed, and that induces a party to enter into the agreement. Misrepresentation must be of some material fact, and not simple a misstatement of a minor matter that does not go to the root of the contract. If the parties include the false statement as a term of the contract (such as a statement as to quality or performance), then the proper action, if the statement proves to be untrue, is an action for a breach of contract, rather than misrepresentation.