Fraud and Misrepresentation

Fraud and Misrepresentation

While most parties entering into a contract do so with good intentions, sometimes individuals or companies commit fraud or misrepresentation to encourage a transaction. The laws regarding fraud and misrepresentation are often complex, and require certain criteria be met in order for the injured party to obtain compensation.

In order for something to be considered fraudulent or misrepresented in a contract, it must meet the following criteria:

  • One party must make a false representation of facts
  • The misrepresentation must be relevant to the transaction or contract
  • The misrepresentation must have been made knowing it was false or with reckless disregard for whether or not it was true
  • The misrepresentation must have been made to induce the other party into action or inaction
  • The other party must have relied on the misrepresentation
  • The other party must have suffered damages as a result of the misrepresentation

Fraud and misrepresentation can also include the failure to mention or disclose information regarding the transaction. Regardless of the type of misrepresentation, the injured party must be able to show reasonable reliance, or that reliance on the misrepresented fact must have been reasonable. Additionally, you must show that you would not have entered into the contract or transaction had you known the misrepresentation was false.

Determining Damages

Oftentimes, the remedy for fraud and/or misrepresentation is the voiding of the contract. However, the injured party can also recover bargain damages, or what they would have received if the other party had performed as promised. Injured parties can also bring a claim under the Texas Deceptive Trade Practices-Consumer Protection Act to be compensated for punitive damages, mental anguish, legal fees, and noneconomic damages.

Accusations of fraud and/or misrepresentation are very serious. Whether you have been a victim of fraud or misrepresentation or you have been accused of such, you will need an experienced Houston business attorney to protect your best interests.

Adair Myers Stevenson Yagi: Houston Fraud and Misrepresentation Attorneys

The experienced attorneys at Adair Myers Stevenson Yagi are aggressive litigators with decades of experience. If you or your business have been the victim of fraud or misrepresentation or have been accused of either, our attorneys can help you understand your legal options. Contact us today to schedule a consultation to discuss your case.