When companies or individuals decide to work together, they enter into a legal contract. That contract exists to make sure that both sides adhere to the terms of the agreement that they’ve entered into. The contract lists out things like the terms involved, what one party will do for the other, and how much compensation there will be. When contracts work well, everything is fine. There are times, however, when one party accuses another of fraudulent misrepresentation.
When parties enter into contracts with each other, they are assuming that each side is coming forward with all of the information necessary to complete that agreement. There is an assumption that the information being exchanged is true. Sometimes, Company A will find out that Company B entered into the contract with inaccurate or incomplete information. Company A may also have found out that the information that was given was not exactly true or blatantly untrue. Company B may have given false information about the products that they were delivering or the services that they would be providing. If this is done intentionally, Company A may be able to sue for fraudulent misrepresentation.
Some companies may even enter into a contract assuming that the information that the information being provided is true, but then it later turns out that the information isn’t true. Sometimes when companies provide information about their products in good faith, they may have been lax about making sure that what they were providing was a quality product. If that’s the case, they could be sued for fraudulent misrepresentation. There is an assumption that when a company offers a product in a contract, everything has been done to make sure that the product has been vetted.
Companies or individuals that suspect fraud in their business dealings may benefit by connecting with law firms that have experience working with these kinds of deals. These legal professionals have experience dealing with many of the complex issues that arise with contracts.