Types of misrepresentation mistakes. - SS2 Commerce Past Questions and Answers - page 1

Intent to deceive

Negligent misrepresentation

Both parties were mistaken about a fundamental term

Burden to ensure due care in contract formation

Fraudulent misrepresentation

Innocent misrepresentation occurs when a party provides false information in a contract honestly, without any intention to deceive. It can make the contract voidable if the innocent party relied on the false information.

An example could be two parties entering into a contract for the sale of a painting, both believing it to be an original work by a famous artist. If it is later discovered that the painting is a forgery, the mutual mistake about its authenticity may make the contract voidable.