When an individual or entity makes false claims in order to persuade another individual or entity into entering into a transaction with the former, the former may be charged with misrepresentation. This type of accusation is most common in cases involving real estate contract claims, fraud, and false advertising.
When a plaintiff files a claim of misrepresentation, the prosecution has the burden to prove 5 elements of the cause of action in order to be successful. First, the plaintiff must prove that the defendant made a false claim or statement of fact. Second, the plaintiff must prove that such a false statement was done deliberately. Thus, the defendant knew that he or she was committing misrepresentation. Third, it must be proven that the defendant knowingly misrepresented because the plaintiff would rely on the statement in order to enter into a transaction with the defendant. Fourth, the plaintiff has to prove that he or she depended on the misrepresentation in order to enter into a transaction with the defendant. Lastly, the fifth, the plaintiff must prove that he or she has been harmed or injured or has suffered losses due to the misrepresentation.
If the defendant is found to be guilty of misrepresentation, the court may find it necessary to award the plaintiff damages, or monetary restitution, in order to compensate for the losses or injuries suffered by the plaintiff. The court may also order an injunction to stop any further misrepresentation. The injunction demands that the defendant cease and desist from committing misrepresentation.