A more thorough explanation:

Definition: A statement made to convince someone to enter into a contract, which is considered important enough that if it is found to be untrue or misleading, the contract can be cancelled without penalty.

A material representation is a statement that a reasonable person would consider important in making a decision about a transaction. For example, if a seller tells a buyer that a car has never been in an accident, but it turns out that the car was in a major accident, the buyer can cancel the contract without penalty because the representation was material.

Another example of a material representation is when a real estate agent tells a buyer that a property has no zoning restrictions, but it turns out that there are restrictions that would prevent the buyer from using the property as intended. In this case, the buyer can cancel the contract without penalty because the representation was material.

Overall, a material representation is a statement that is important enough to influence a person's decision to enter into a contract. If the representation is found to be untrue or misleading, the contract can be cancelled without penalty.