Cancelling a contract for misrepresentation

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If you enter into a contract as a result of a fraudulent misrepresentation, then you can cancel the contract, claim damages, or both. But what does “misrepresentation” actually mean in relation to a contract? Fraudulent misrepresentation is a legal term related to deliberately making a false, misleading or deceptive statement.

It’s illegal for a business or person to give you false information about themselves or the product or service they offer. Some examples of misrepresentation include:

  • making misleading statements that the goods or services are of a particular standard, quality, grade, style or model, if they are not
  • hiding the fact that a product is refurbished
  • claiming that the goods or services are available or can be delivered or performed when they know that it’s not possible
  • assuring that they have licences, accreditation or certification when they don’t
  • showing fake quality certificates or warranties
  • recommending unnecessary repairs or replacements to items

If you have a contract with a business or individual that has misrepresented their product or service, you can withdraw from the contract within 1 year.

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