For a misrepresentation to be material, it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so.

Material Misrepresentation

False statements or omissions of fact that are so significant they affect a party's decision to enter into a contract.

Reasonable Person

A hypothetical individual used as a legal standard, representing how a typical person would responsibly act in certain circumstances.

Manifest Assent

The clear indication through words or actions by a person that they agree to the terms or conditions of an agreement.