In the context of contracts, what does 'misrepresentation' mean?

Misrepresentation in the context of contracts refers to a false statement made that can have a significant impact on a party's consent to the contract. When one party provides incorrect information that the other party relies upon when entering into an agreement, it can potentially invalidate the consent given, leading to issues of enforceability. This false statement can be made either intentionally (fraudulent misrepresentation) or unintentionally (innocent misrepresentation), but in either case, it is the inaccuracy and its influence on the agreement that lie at the heart of the definition.

For example, if a seller falsely claims that a property has no structural damage, and the buyer relies on this claim in their decision to purchase, the buyer's consent was affected by the misrepresentation. As a result, the buyer may have legal grounds to seek remedies if they discover the truth after the transaction.

The other options do not capture the essence of misrepresentation. A truthful statement or an honest error would not generally amount to misrepresentation, as they do not involve deception or falsehood. A minor flaw in a contract also does not align with the definition, as misrepresentation specifically involves a significant falsehood that affects the consent of the parties involved.