What characterizes innocent misrepresentation?

Innocent misrepresentation is characterized by the fact that the party making the misrepresentation genuinely believes the information they are providing is true. This means that the statement made is not knowingly false; the party is unaware of the untruth of the statement. The absence of intent to deceive is crucial in distinguishing innocent misrepresentation from fraudulent misrepresentation, where a party knowingly makes false statements with the aim of misleading another party.

For this reason, the concept rests on the lack of knowledge regarding the falsehood of the statement. In legal terms, this type of misrepresentation can lead to a situation where the misled party may still have grounds for a claim, even though the misrepresentation was made without any malicious intent. This understanding underlies the essential nature of innocent misrepresentation as being rooted in good faith belief.