When is innocent misrepresentation likely to occur?

Innocent misrepresentation occurs when a party provides false information without knowing that the information is inaccurate. This situation often arises when someone mistakenly believes that what they are stating is true, yet it turns out to be false. In such cases, the party does not intend to deceive or manipulate the other party; they are simply unaware of the truth.

The other options describe scenarios involving intentional deception or wrongful acts, such as coercion or failure to disclose critical information, which fall into different categories of misrepresentation or misconduct. These actions typically indicate a knowing or willful disregard for the truth, contrasting with innocent misrepresentation, where there is no intent to deceive. Thus, the correct understanding of innocent misrepresentation hinges on the party's lack of knowledge regarding the falsity of the information they provided.