Florida Bail Bonds Practice Exam

What term refers to untrue statements made before a contract is signed?

1. Misrepresentation

2. Waiver

3. Perjury

4. Void

The correct answer is: Misrepresentation

The term that refers to untrue statements made before a contract is signed is misrepresentation. Misrepresentation occurs when one party provides false information that induces another party to enter into a contract. This false information can be either intentional (fraudulent) or unintentional (negligent or innocent). Misrepresentation is significant in the context of contracts because if one party relies on this false information, they may seek legal remedies, such as rescinding the contract or claiming damages. It is crucial to understand that misrepresentation undermines the validity of consent in forming a contract, which is a foundational principle in contract law. In contrast, a waiver refers to the intentional relinquishment of a known right, which does not involve untrue statements about facts prior to the formation of a contract. Perjury, on the other hand, pertains to the act of lying under oath, typically in a legal setting, and not specifically related to contract formation. Lastly, void refers to something that has no legal effect or validity and does not specifically address statements made prior to contract signing.