Which scenario is an example of misrepresentation?

The scenario involving a false production claim leading to a voidable contract is an example of misrepresentation because it involves misleading information that impacts a party's decision to enter into a contract. Misrepresentation occurs when a party makes a false statement or assertion that induces another party to enter into an agreement. In this case, if one party claims their product has certain capabilities that it does not, and the other party relies on that claim to make their contractual decision, the validity of the contract can be affected. The misled party has the right to void the contract because they were misinformed about a critical aspect of what they were agreeing to, demonstrating how misrepresentation can undermine trust and enforceability in contracts.

In contrast, the other scenarios do not constitute misrepresentation. Changing contract terms before signing reflects a negotiation process rather than a false statement. Differing expectations of performance indicate a lack of consensus or clarity but do not involve an assertion that is intentionally misleading. Lastly, not performing obligations relates to breach of contract rather than misrepresentation, as it deals with fulfillment of the contract's terms post-agreement rather than misleading a party prior to the signing.