What type of misrepresentation occurs when the teller believes the statement to be true but it is not?

Innocent misrepresentation occurs when a person makes a statement they believe to be true, but that statement is actually false. This type of misrepresentation typically arises in situations where the individual did not have any intent to deceive or any knowledge that the information provided was incorrect.

In legal contexts, innocent misrepresentation can lead to certain remedies, such as rescission of a contract, but generally does not involve liability for damages since the party making the statement genuinely believed it to be accurate. It highlights the importance of honest communication in transactions, where both parties rely on the information presented by each other.

The other types of misrepresentation involve varying degrees of intent or knowledge about the falsehood of statements. For example, fraudulent misrepresentation involves deliberate deception, while non est factum pertains to a situation where someone is unable to understand the nature of a document, usually due to circumstances beyond their control. Unilateral mistake refers to a situation where only one party is mistaken about a fundamental fact of the agreement. Thus, the nature of innocent misrepresentation hinges on an honest mistake without malicious intent.