Explain the difference between innocent and fraudulent misrepresentation.

A misrepresentation (whether innocent or fraudulent) must be e or a false statement of a material fact made by a party to a contract either before  time of making the contract with the intention of inducing the other party to enter into contract and with the result that he did enter into it.

If the person who made the statement did not know that it was untrue, the misrepresentation is innocent, but if it was made recklessly or when the person making it knew it to be false or not caring whether it was true or false then the misrepresentation is fraudulent.

The party misled by an innocent misrepresentation may ignore the misrepresentation and treat the contract as subsisting or claim rescission of the contract . The rescission will however be allowed if it is still possible to restore the parties to their original position. If the representation is fraudulent, the misled party may rescind the contract and sue for the damages, or ignore the misrepresentation and treat the contract as binding.

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