Prior to entering an agreement with another entity, companies in New York and elsewhere may wish to protect their interests by being thorough with negotiations. Discussing goals and responsibilities may be an integral part of drafting a contract for the arrangement, but what happens if one party is not honest about capabilities and goals? Misrepresentation continues to be a common source of business disputes and allegations of such issues could arise under various scenarios.
According to experts, misrepresentation can come in several forms and such matters can lead to highly contested disputes. Some examples of types of misrepresentation may include:
- Negligence: Experts indicate that negligent misrepresentation may occur when one party does not exercise reasonable care or fails to perform responsibilities or duties in an acceptable manner.
- Fraud: Fraudulent misrepresentation may occur when one party seeks to gain by entering an agreement after intentionally providing false information about capabilities.
- Innocent: Experts indicate that innocent misrepresentation may occur when one party makes false statements while believing the information provided to be true.
When allegations of misrepresentation arise, all parties involved may be left in search of advice on their options and the best course of action with which to safeguard their interests.
Regardless of how it occurs, those who encounter intense business disputes stemming from allegations of misrepresentation could benefit from retaining the services of an attorney early in the process. An attorney can evaluate the situation a client in New York is facing and provide insight on all his or her available options. Such advice could prove integral to helping place a person in a better position in which to make informed choices while preparing to protect his or her interests through the proper channels.