Companies that are preparing to enter a business arrangement with another entity may feel it vital to be thorough when negotiating the terms for the agreement. Part of navigating this process may involve covering each parties responsibilities and expectations. However, what happens if business owners in Minnesota feel the other party wasn’t entirely honest when addressing responsibilities? The presence of such issues could lead to claims of misrepresentation, which continue to be a leading cause of many business disputes.
Experts indicate that there are various circumstances in which claims of misrepresentation may arise. In some cases, one party might be accused of negligent misrepresentation by failing to exercise reasonable care or failing to perform its duties in accordance with the agreement. Should one party attempt to enter a business arrangement by intentionally providing false or misleading information, this could lead to allegations of fraudulent misrepresentation.
Innocent misrepresentation is a term that may pertain to a situation in which one party makes false statements about capabilities and goals without intention of misleading the other party. This may occur when this party believes that the information provided during initial negotiations was true. Regardless of how it occurs, a misrepresentation claim could have a significant impact on every party involved and it might not always be easy to know how best to approach the matter.
Facing misrepresentation claims
Misrepresentation claims continue to be common types of business disputes and facing such issues can be a daunting process. Companies in Minnesota who remain uncertain of the best course of action to take might benefit from consulting with an attorney as soon as possible for guidance in carefully evaluating their situations. An attorney can provide a client with insight in making informed choices while creating a strategy with which to seek the best outcome possible regarding the future of the company.