Give two reasons why the differences between fraud and misrepresentation are relevant.

A misrepresentation is an assertion that is not in accord with the truth.It is not necessary that the misrepresentation be intentionally deceptive.Fraud is the type of misrepresentation that is committed knowingly,with the intent to deceive.The reasons why the distinction between fraud and misrepresentation is relevant are,first,there is no materiality requirement in a fraud case.Second,there is a greater liability of a tort recovery in a fraud case,which raises the possibility of punitive damages too.