Texas Legal Update I Practice Test 2026 – Complete Exam Preparation

Fraudulent misrepresentation refers specifically to a situation where one party makes a false statement with the intent to deceive another party, persuading them to take action that results in harm or loss. This definition aligns perfectly with the notion that the false statement is made knowingly, meaning the individual is aware that the information they are providing is not true. The effect of such misrepresentation typically leads the victim to act in a way that they otherwise would not have, had they known the truth.

In the context of contract law and tort law, such misrepresentation can make contracts voidable, and it may also lead to damages for the party who has been misled. This legal concept is essential to protect parties from deceitful practices, thereby promoting honesty and integrity in transactions.

The other options describe different legal principles but do not capture the essence of fraudulent misrepresentation. For instance, a legal defense against negligence claims does not relate to intentional deception but rather concerns questions of duty and care in civil law. Failing to disclose relevant information in a contract pertains more to non-disclosure rather than an affirmative act of lying or misleading, which defines fraudulent misrepresentation. Finally, a misleading sign of contract validity may imply confusion regarding agreements but does not necessarily involve the same level