Final answer:
In the context of an application, all statements made are considered representations because there is no certainty that they are factual until verified. Representations are presented as true but are not warranted as facts. Facts, in contrast, are built on evidence and data and can be proven to be true.
Step-by-step explanation:
All statements made on an application are considered representations because there can be no guarantee that they are true. Representations are statements that are presented as true to the best of the applicant's knowledge, but they are not guaranteed to be factual or free from error. In the context of applications and contracts, it is understood that representations are not warranted as facts until they are verified. Therefore, anyone relying on these representations typically does their own due diligence to confirm their veracity.
Facts, on the other hand, are statements that can be proven or whose truth can be inferred. They are built on evidence and data. For instance, factual claims about a product's performance are often checked by regulatory agencies like the Federal Trade Commission.
It is crucial to differentiate between representations and facts when filling out an application to ensure that all provided information is as accurate and truthful as possible. Applying the principle of 'caveat emptor' or 'let the buyer beware,' individuals must verify the representations before accepting them as facts.