Agent: misrepresentation

Updated: Aug 20, 2021

Misrepresentation by an agent is equal to misrepresentation by his principal, whether fraudulent or innocent. However, if an agent makes an innocent misrepresentation does not become fraudulent by reason of the principal’s knowledge of the true facts e.g. A contracts with B through agent C; B is aware of faults in goods being sold to A; C is not; A relies on C’s representation; A cannot then claim damages for fraudulent misrepresentation unless B has deliberately misled C.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.