Sample Essay Public statements made on the services offered by the manager and the enterprise…
Stone (2003, p.119) indicates that a misrepresentation is considered as a false account of an ongoing fact which is made to one party of the contract by the other. This false claim becomes the reason as to why the party agrees to the terms of sale. It is important for the manager to strictly avoid misrepresenting their business and services. They should be aware that any form of misrepresentation involves severe counter measure which would sabotage their business.
If and when the consumer is able to prove legally that they agreed to the terms of services merely as a result of the false statement, they will have cause to seek compensation. Misrepresentation can either be intended or unintended causing negligence or fraudulence by either party. Where innocent misrepresentation is admissible, the manager can avoid liability of any damages caused to the consumer. However, negligent and fraudulent misrepresentation may result to the enterprises liability.
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