III. MISREPRESENTATION
A. Generally: If a party can show that the other made a misrepresentation to him prior to signing, he may be able to use this in either of two ways: (1) he may use this as a defense in a breach of contract action brought by the other; or (2) he may use it as the grounds for rescission or damages in a suit in which he is the plaintiff. [477]
B. Elements of proof: [477]
1. Other party’s state of mind: P does not generally have to prove that the misrepresentation was intentionally made. A negligent or even innocent misrepresentation will usually be sufficient to avoid the contract, if it is made as to a material fact. [477]
2. Justifiable reliance: The party asserting misrepresentation must show that he justifiably relied on the misstatement. [477]
3. Fact, not opinion: The misrepresentation must be one of fact, rather than of opinion. (Example: A salesman’s statement, "This is a very reliable little car," is probably so clearly opinion, or "puffing," that the buyer cannot rescind for misrepresentation by showing that the car in fact breaks down a lot. But, "This car gets 30 miles per gallon in city driving," is an assertion of fact, so it can serve as the basis for a misrepresentation claim.) [477]