what is fraud misrepresentation
1 Fraudulent misrepresentation occurs when one makes representation with intent to deceive and with the knowledge that it is false. 2  An action for fraudulent misrepresentation allows for a remedy of damages and rescission. 3  One can also sue for fraudulent misrepresentation in a tort action.n cases of fraudulent misrepresentation, the remedy is either rescission or a claim for damages. The remedy to injured party for negligent misrepresentation is in common law a claim for damages. In other words, actual losses only are recoverable.