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When can one sue for fraudulent misrepresentation?

Business owners are always making deals and signing contracts. When they do, they want to believe that the individual or entity with which they are entering an agreement is being honest. Unfortunately, there are those in Colorado and elsewhere who may say or do whatever just to get contracts signed. This is called fraudulent misrepresentation, and one can sue for damages if one is a victim of it and it caused harm.

Legally, contracts are only considered valid if both parties agree to the terms. In cases where fraudulent misrepresentation is an issue, it is impossible for one party to fully agree to the contract terms because the agreement is essentially based on a lie. Making false statements — written or verbal — remaining silent or using various gestures, if done knowingly, constitutes fraudulent misrepresentation.

If it is possible to prove one is a victim of fraudulent misrepresentation, it is possible to have the contract voided. It is also possible to have the contract deemed voidable, meaning one can decide if he or she wants to rescind the agreement. As far as damages are concerned, victims may only be allowed to seek relief for actual losses.

There are various elements one has to prove in fraudulent misrepresentation cases. If even one of the components is missing, this could break one’s case. An experienced attorney will have the ability to review one’s claim, and, if the necessary information is there and sufficient enough to proceed with legal action, further assistance can be provided to seek maximum relief for one’s losses. This can be done through negotiation or, if necessary, litigation in a Colorado civil court.