Which term describes a false statement made to induce someone to enter into a contract?

The term that describes a false statement made to induce someone to enter into a contract is misrepresentation. In legal contexts, misrepresentation refers specifically to a scenario where one party provides false information to another, leading them to make a decision they might not have made otherwise. This false information can be a crucial factor influencing the decision to enter into the contract.

In cases of misrepresentation, the party making the false statement may be held legally responsible for any damages that occur as a result of the misleading information. This is particularly important in contractual agreements, as it helps maintain fairness and accountability in business dealings. Various forms of misrepresentation exist, including negligent misrepresentation and fraudulent misrepresentation, each carrying different legal implications and consequences.

The other options do not correctly describe this legal concept. Misstatement typically refers to a mistake in what has been expressed, which may not carry the same legal weight as misrepresentation. Misappropriation pertains to the unauthorized use of someone's property or funds, while miscommunication involves failures in conveying messages rather than the act of making false statements to secure a contract.