What is the characteristic of fraudulent misrepresentation?

Fraudulent misrepresentation involves a false statement that is made knowingly, with the intent to deceive another party. This characteristic is essential because it sets fraudulent misrepresentation apart from other types of misrepresentation, such as negligent or innocent misrepresentation. In the context of fraudulent misrepresentation, the party making the statement is aware that the information is false or is acting with a reckless disregard for the truth. This knowledge is crucial because it establishes the intent to mislead the other party into relying on that false information, often resulting in harm or losses to the misled party.

The emphasis on knowing the statement is false underscores the dishonesty inherent in fraudulent misrepresentation, distinguishing it from other forms where the misinformation may stem from carelessness or lack of knowledge. By holding the perpetrator to this standard, the law provides a mechanism for holding individuals accountable for deliberately misleading others, thereby protecting the integrity of commercial transactions and individual rights within the hospitality industry and beyond.