Which term describes the practice of providing false information to induce another party into a contract?

The practice of providing false information to induce another party into a contract is best described as misrepresentation. Misrepresentation occurs when one party makes a false statement that leads another party to enter into a contractual agreement, often under the belief that the information provided is true. This can significantly affect the validity of the contract, as it undermines the informed consent required for such agreements.

In the context of contract law, misrepresentation can be classified into several categories, including innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation, depending on the intent and knowledge of the party making the false claim. The key aspect is that the false information must be material and lead the other party to make a decision they would not have made had the true facts been revealed.

Coercion refers to forcing someone to act against their will, which does not involve the provision of false information. Deception broadly encompasses a range of dishonest activities. While closely related to misrepresentation, it does not specifically highlight the aspect of inducing contract formation based on false information. Fraud generally implies an intent to deceive with the purpose of securing an unlawful gain, which can be a more serious implication than mere misrepresentation. Hence, while fraud can include misrepresentation, the specific act of inducing a