Which term describes a statement made that induces another to enter a contract but is false?

The term that best describes a statement made with the intent to induce another party to enter into a contract, which turns out to be false, is known as misrepresentation. Misrepresentation occurs when one party provides false information that leads another party to enter into a contract, believing the information to be true. This can include both negligent misstatements, where the false information is provided without due care for its accuracy, as well as fraudulent misstatements, which involve intentional deceit.

In the context of contract law, misrepresentation can have significant consequences, such as the possibility of rescinding the contract or claiming damages if the misrepresentation materially affects the decision-making of the other party. Understanding this term is crucial for identifying scenarios in contractual disputes where one party may have been misled by false statements.