Fraudulent Representation Law and Legal Definition

Fraudulent representation means making of a false statement about a material fact, with the knowledge that such statement is false, to another person with an intention that such other person to whom that statement is made must believe it as true and must act upon it resulting in an injury to the person to whom such false representation is made.

Inorder to constitute a fraudulent representation the following elements need to be proved:

(1)that the party making the statement was aware that it is false or disregards the possibility of it being false;

(2) the party making the statement does so to induce another party to enter into a contract; and

(3) the other party enters the contract as a result of the statement and consequently suffers injury.