Misrepresentation
Dictionary of Terms and Phrases Used in American or English Jurisprudence · Benjamin Vaughan Abbott · 1879
Dictionary of Terms and Phrases Used in American or English Jurisprudence
An account or description of matters of fact given to another person falsely and to his injury. The word is of frequent and important use in the law of contracts, in view of the principle that one who has been induced, by misrepresentations, to enter into a contract, can be relieved from liability upon it, on proper application and proof of the deceit or mistake; and particularly in the law of insurance, where misrepresentation is frequently a ground of defending actions on policies. Misrepresentation is asserting what is not true in whole or in part. Though not bound to answer a question, yet, if the party does answer, he must do it fully, fairly, and in good faith, so as to give the other the benefit of the question and information sought. If a representation is voluntarily made, without being requested, it must be substantially true in every matter material to the contract.
Blydenburgh v. Welsh, Baldw. 331, 337.
To constitute a representation, there must be language used equivalent to an averment of a particular fact. If it be untrue, its materiality to the risk must determine its influence on the policy. A false representation, though no breach of the contract, if material, avoids the policy on the ground of fraud, or because the insurer has been misled by it.
Livingston v. Maryland Ins. Co., 7 Cranch, 506.
In order to avoid a policy for a misrepresentation, it must be a misrepresentation in which the matter disclosed or concealed is material to the risk of the voyage; one in which such matter affects the risk so as to render it different from the one understood at the time, and on which the premium was calculated.
Hodgson v. Marine Ins. Co., 5 Cranch, 100.
If a person makes a representation on information derived from others, reporting it truly, and states it, not as being known to him positively, but as resting on information, the policy is not avoided because the information proves incorrect.
Tidmarsh v. Washington Fire & Marine Ins. Co., 4 Mas. 439.
If a representation is made in good faith, the policy is not avoided by the representation being rendered incorrect through a subsequent change.
Hubbard v. Coolidge, 2 Gall. 353.