What to do about misrepresentation in a contract?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do about misrepresentation in a contract?

I entered a contract with a service company. The sales people said one thing, their web site says the same as their sales. However, after the training period when we were just about to start using, I realized the software could not fulfill some of the items. I asked them if they can adjust they said no they can’t. I asked for them to cancel. Since I never used the software, I asked if they can only charge me for the minimum 3 months that I was obliged to pay. They never responded. The threatened debt collection. After months of email them with no reply, a debt collector calls.

Asked on June 19, 2012 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A material, or important, misrepresentation,  knowingly or intentionally made to induce you to enter into a contract or buy something is fraud; fraud can provide grounds to rescind, or void, the contract. If someone tries to enforce a contract against you which was founded on fraud, you could raise fraud as an affirmative defense to liability.

That's the law; however, given that no legal action is ever certain (e.g. if they sue you, and you raise fraud as a defense, can you prove the misrepresentations? and are they sufficiently material or important, or just minor inconveniences, which would not provide grounds for rescission) and defending a lawsuit has its own costs, it may be better to try to settle, or even pay the full amount, rather than contest the charge--it depends on how much is at stake.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption