Asked by Dathan Trejo on Jul 13, 2024

verifed

Verified

Pet Pig Farm.Marcy wanted to buy Lucy's land and use it to breed small pigs to be kept as pets.Marcy told Lucy that having water on the property was very important.Lucy assured her that a spring ran through one corner of the property.Therefore,Marcy agreed to buy the farm.Although she did not ask Lucy anything about it,Marcy,who loved pigs,assumed that the neighbors would be pleased with the pigs being in the area.In a separate contract,Lucy also agreed to sell Marcy a used truck for $5,000.After the contract for the land sale was entered into,it was discovered that actually the spring did not run through the corner of Lucy's property.The area in which the spring ran actually belonged to a neighbor.Additionally,when Lucy brought Marcy the used truck,Marcy said,"That's not the truck!" It was discovered that Lucy,who had two trucks,thought that Marcy had bought the older truck when Marcy thought she had purchased the newer truck.Marcy was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Marcy for nuisance.Assuming that Lucy fraudulently made a misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct,considering only the lack of a spring issue,which of the following is true if Marcy does not want to go through with the sale of the farm?

A) Marcy may rescind the contract,and she will recover $10,000 in damages in accordance with the exact statutory amount set by federal law.
B) Marcy may rescind the contract,but she may not recover damages.
C) Marcy may sue for damages regardless of whether she can establish injury,but she may not rescind the contract.
D) Marcy may rescind the contract,and she may also sue for damages if she can establish injury.
E) Marcy may rescind the contract and she may also recover damages,but only nominal damages.

Fraudulently Misrepresentation

An intentionally false representation of fact made by one party to another, with the intent to deceive and for the purpose of inducing the other party to act or refrain from acting in reliance on it.

Rescind

The legal act of canceling, revoking, or annulling a contract or agreement, effectively bringing it to an end.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm as a result of another's action or inaction.

  • Pinpoint and evaluate diverse kinds of misrepresentations (fraudulent, innocent, and negligent) and their legal outcomes.
  • Examine the judicial solutions for contract breaches, such as annulment, various forms of damages (restitutionary, minimal, dependency), and enforcement of precise fulfillment.
  • Identify and assess the legal consequences of knowingly engaging in deceit, particularly within the framework of fraudulent misrepresentation.
verifed

Verified Answer

AE
Alicia EspinosaJul 19, 2024
Final Answer :
D
Explanation :
If damages are sought in a fraudulent misrepresentation case,the defrauded party must prove that he or she was injured by the intentional misrepresentation.