What does misrepresentation entail according to the Indian Contract Act?

Misrepresentation, as defined under the Indian Contract Act, involves the act of stating false information that is not consistent with the truth, regardless of the intent to deceive. This means that even if the person making the statement did not intend to mislead the other party, they can still be held liable if the information provided is false. This provision is critical because it recognizes that the reliance on accurate information is essential for fairness in contractual agreements.

In the context of the other choices, a misunderstanding about contract obligations pertains more to miscommunication rather than misrepresentation itself. Alteration of facts to benefit one party could imply fraud or deceit, which is a different legal concept with its own implications. Negotiating a contract under extreme pressure relates to the idea of coercion or undue influence, which again is distinct from misrepresentation. Thus, option A accurately encapsulates the nature of misrepresentation as per the Indian Contract Act.