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in contract law fraudulent misrepresentation occurs if a party makes a false claim that induces another party to enter into a contract but what if the false claim is only a statement about a law the court in National conversion Corporation versus Cedar building Corporation determines whether a statement given as a representation of fact can give rise to a claim of fraudulent misrepresentation in 1965 National conversion signed a five-year lease with cedar building to rent an industrial building National conversion planned to use the building to convert restaurant garbage into fertilizer both companies were represented by lawyers during the lease negotiations in the lease Cedar building included a representation that the building was located in an unrestricted Zone without any zoning limitations for creating fertilizer during the negotiations National conversions lawyer asked to take a break to verify that the building was in an unrestricted Zone Cedar buildings lawyer told National con

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