Misrepresentation as a possible factor in business disputes

On Behalf of | Jan 12, 2022 | Business Disputes |

Companies in Pennsylvania and elsewhere may rely on various types of information when deciding whether to enter an arrangement with another party. Should a company feel as though it has been subjected to misrepresentation, those involved may wish to take every possible measure to explore their available options and protect their interests. In a business setting, misrepresentation can come in various forms and the presence of similar concerns could prove a constant source of dispute in many scenarios.

Types of misrepresentation

Experts indicate that there are three main types of misrepresentation in business settings, which include negligent, fraudulent and innocent misrepresentation. Negligent misrepresentation refers to a scenario in which a representative of a company fails to exercise reasonable care in performing a duty assigned by a representee. Fraudulent misrepresentation involves a situation in which a party might seek to gain by intentionally making false statements about a company.

Innocent misrepresentation may occur when representatives make statements they believe to be true, but prove inaccurate or false. Regardless of how it occurs, the presence of misrepresentation can have a significant influence on the decisions each party makes. While in some cases, similar issues may simply lead to a breakdown in business relationships, there may also be a possibility that the presence of such concerns could lead to significant losses for the parties involved.

Knowing the options

Business owners who feel they have been subjected to misrepresentation or stand accused of similar issues may be left with questions about how best to approach the situation. Those who face such issues could find it helpful to consult with an attorney as soon as possible for guidance on all their legal rights and available options. An attorney can help a client in Pennsylvania create a strategy with which to protect his or her business interests through the proper channels and assist in navigating every stage of the process.