Legal Definitions - representor

A representor is an individual or entity who makes a statement of fact to another party, intending for that statement to be relied upon. This statement, known as a "representation," often occurs during negotiations and can influence the other party's decision to proceed with an agreement or transaction.

Here are some examples illustrating the role of a representor:

• Real Estate Sale: Imagine a homeowner selling their property. During a viewing, the homeowner tells a potential buyer, "The heating system was completely replaced last year and is under warranty for another four years." In this scenario, the homeowner is the representor because they are making a factual statement about the property's heating system. The buyer might rely on this representation when deciding whether to make an offer.

• Business Investment: A startup founder is pitching their business to a group of potential investors. The founder states, "Our company has secured exclusive patent rights for this technology, giving us a significant market advantage." Here, the startup founder acts as the representor by making a specific claim about the company's intellectual property. The investors would likely consider this representation when evaluating the investment opportunity.

• Insurance Application: When applying for car insurance, an individual fills out a form and declares, "I have not been involved in any accidents in the past five years." The individual applying for the insurance is the representor, providing a statement of fact about their driving history. The insurance company will rely on this representation to assess risk and determine the premium.