Misrepresentation, in law, a false statement or misleading act that deceives another person in a transaction or contract. When the misrepresentation is deliberate it is a fraud. If a person suffers loss because of deliberate misrepresentation, he or she may bring suit for damages. When the misrepresentation is unwitting and innocent there is no fraud. Common law gives no relief in cases of innocent misrepresentation. Some states, however, have statutes covering certain types of innocent misrepresentation, permitting the contracts to be rescinded or damages to be granted.