Asked by Brandon Morrone on May 01, 2024
Verified
Because of the potential for punitive damages, plaintiffs often include a claim for fraudulent misrepresentation in their contract disputes.
Fraudulent Misrepresentation
A false statement of a material fact made knowingly, or without belief in its truth, or recklessly, with the intent to deceive and induce another party to act, resulting in harm.
Punitive Damages
Financial compensation awarded to a plaintiff in a lawsuit that goes beyond what is necessary to compensate for losses, intending to punish the defendant for egregious conduct.
- Understand thoroughly the legal criteria and prerequisites necessary for the substantiation of fraud and fraudulent misrepresentation.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
True
Explanation :
Fraudulent misrepresentation can lead to the award of punitive damages, which are intended to punish the defendant for their misconduct and deter similar future behavior, making it an attractive claim for plaintiffs seeking higher compensation in contract disputes.
Learning Objectives
- Understand thoroughly the legal criteria and prerequisites necessary for the substantiation of fraud and fraudulent misrepresentation.