What is it?
Untrue statements fall under the legal doctrine of misrepresentation, which governs false statements that induce another party to enter into a contract and form the basis for claims of fraud or negligent misrepresentation.
untrue
Contract LawLegal glossary term
Quick answer
Untrue usually means false or incorrect. In contracts, it matters because material untrue statements can void agreements. Before signing, verify all representations with documentation.
Definitions
What is untrue?
Legal Definition
A statement in a contract is untrue when it contains false information that was known or should have been known to be false when made. Material untrue representations can trigger contract rescission and damages claims for the relying party. The distinction between intentional fraud and negligent misrepresentation affects the severity of available remedies.
Plain-English Translation
Like a child claiming they didn't eat the cookie when crumbs are on their face, untrue statements in contracts can make the whole agreement void if it was important to the deal.
Contract relevance
Why untrue matters in contracts
Ignoring untrue representations can lead to contract rescission, damages, and potential liability for fraud. The party making the untrue statement bears the risk of proving the statement was true or face legal consequences.
Document context
Where untrue appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Purchase Agreement | Representations and Warranties | Defines seller's obligations |
| Loan Application | Financial Information Section | Affects loan approval terms |
| SEC Filings | Risk Factors | Must disclose all material untrue statements |
| Affidavits | Verification Section | Perjury consequences for untrue statements |
| Insurance Policy | Declarations | Coverage may be voided by untrue statements |
| Settlement Agreement | Recitals | Basis for settlement terms |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| All statements contained herein are true and correct | Everything in the document is accurate | Verify with independent sources |
| No untrue statements were made in the negotiation process | No false claims were discussed | Review meeting notes and emails |
| The representations are untrue in any material respect | Important facts are false | Identify which facts are material to the deal |
Red flags
Red flags to watch for
Wording examples
Clearer wording examples
Vague wording
All statements are true
Clearer wording
All statements are factually accurate as of [date] and can be verified with [specific documentation]
Vague wording
No untrue representations
Clearer wording
All representations are factually correct and material to this agreement
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Verify all factual claims with third-party documentation
2
Distinguish between objective facts and subjective opinions
3
Check dates and ensure information is current
4
Identify which statements are material to the agreement
5
Review whether representations have exceptions or qualifications
6
Confirm information hasn't changed since drafting
7
Assess consequences if any statement proves untrue
8
Determine what constitutes a breach for untrue statements
Party impact
How untrue affects each party
| Party | What this party should check |
|---|---|
| Seller | Verify all representations about product condition and history |
| Buyer | Investigate claims about future performance or value |
| Lender | Confirm borrower's financial statements and collateral value |
| Landlord | Ensure property condition disclosures are accurate |
| Franchisee | Verify sales and profit claims in franchise disclosure document |
Comparison
untrue vs similar terms
| Related term | Plain meaning | Main difference from untrue |
|---|---|---|
| False | Not correct in fact | Untrue specifically refers to statements made in legal contexts |
| Material | Important enough to affect decision | Untrue statements must also be material to have legal effect |
| Fraudulent | Knowingly false with intent to deceive | Untrue doesn't necessarily imply intent |
| Negligent | False due to carelessness | Untrue can be intentional or unintentional |
| Misrepresentation | False statement inducing reliance | Untrue is a characteristic of misrepresentation |
Missing or vague
If untrue is missing or vague
If 'untrue' is undefined in a contract, parties may disagree on what constitutes a breach. The materiality threshold becomes unclear, making it difficult to determine which false statements justify termination. Without specification, courts may apply general standards that don't align with the parties' intentions.
Disputes often arise over whether untrue statements were known to be false or made recklessly. The absence of a clear definition can shift risk to the party who made the representations.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Definitions | How 'untrue' is specifically defined in this agreement |
| Representations and Warranties | Which statements are warranted as true |
| Disclosures | What information must be disclosed as untrue if applicable |
| Conditions Precedent | Whether untrue statements affect closing conditions |
| Termination | What remedies exist if untrue statements are discovered |
| Indemnification | Which party indemnifies for losses due to untrue statements |
| Limitation of Liability | Whether untrue statements are excluded from liability caps |
| Dispute Resolution | How disagreements about untrue statements will be handled |
Visual model
Understand untrue fast
An explainer image has not been generated for this term yet.
01
Seller claims a building has no structural issues but foundation inspection reveals cracks
02
Borrower states they have no existing liens when property records show a mortgage
03
Franchisor claims average store profits are $100k when actual average is $60k
Document context
How untrue shows up in legal documents
Why does it matter?
Ignoring untrue representations can lead to contract rescission, damages, and potential liability for fraud. The party making the untrue statement bears the risk of proving the statement was true or face legal consequences.
When does it matter?
When untrue statements are discovered within the statute of limitations period, usually three to six years depending on jurisdiction, a claim for misrepresentation can be brought. Claims must be filed within the contractual notice period specified in the agreement.
Where is it usually seen?
Untrue statements appear in contract representations and warranties sections, disclosure statements in securities offerings, affidavits submitted in litigation, and regulatory compliance filings where truthfulness is legally required.
Who is affected?
The party making untrue statements risks liability to the relying party, who may seek rescission, damages, or specific performance depending on the nature of the falsehood. The injured party must prove they relied on the statement and suffered damages as a result.
How does it work?
First, a false statement must be made to induce reliance. Then, the injured party must prove they relied on the statement and suffered damages as a result. Finally, the court determines if the statement was material and if the defendant knew it was false or made it recklessly.
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Wikipedia
Untrue
Untrue may refer to: Falsehood False (logic) Untrue (album), a 2007 album by Burial, or the title song "Untrue", a 2014 single by Tchami "Untrue", a song by Katatonia from the album Brave Yester Days "Untrue", a song by Coal Chamber from the album Chamber...
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Where untrue connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
Glossary
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Technology & IT Contracts: Using software outside your licence scope can trigger six-figure audit claims.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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