What term describes the failure to disclose a known material fact by a license holder?

The scenario described pertains to the failure of a license holder to disclose a known material fact. In the realm of law of agency, this is classified as negligent misrepresentation. This term captures situations where a party fails to exercise the appropriate degree of care in representing information related to a transaction, leading to misleading situations due to omission, rather than the outright deception found in other forms of misrepresentation.

Negligent misrepresentation arises specifically when the misrepresenting party does not know that their representation is false but should have known, emphasizing the responsibility of the license holder to be diligent in their disclosures. The failure to disclose a known material fact implies a lack of that diligence and suggests that the license holder did not fulfill their duty to communicate important information that could influence the decision-making of the other party.

In contrast, fraudulent misrepresentation involves intentionally deceiving another party. Intentional misrepresentation also implies a knowing false statement rather than a failure to disclose. Exclusive representation, meanwhile, does not pertain to misrepresentation at all, but rather to the scope of an agency agreement. Thus, negligent misrepresentation is the most fitting description of the situation where a license holder does not disclose vital information.