In: Statistics and Probability
Misrepresentation means "a false statement of fact that has the effect of inducing someone into a contract.” Fraudulent misrepresentation is under this category meaning the individual lied or misrepresented something about a transaction, but did it on purpose to trick the other party. There are six elements that satisfy fraudulent misrepresentation. First, someone must make a false representation. Second, the misrepresentation is "material to the transaction". Third, the misrepresentation is made with knowledge that is false, or with reckless disregard as to whether or not it's true (Legalmatch.com).
Fourth, the misrepresentation is made with the intention of inducing the other party to act or to refrain from acting. Fifth, the other party has to rely on the lie. Sixth, the lie must also proximately cause the other party to suffer damages (Legalmatch.com). Chelene's actions match all six elements of fraudulent misrepresentation. Chelene claimed her house was in "perfect condition". For the duration that she lived in the house there were days of rain and the flooding would have been apparent. Marta has the grounds to sue Chelene for fraudulent misrepresentation.