Asked by FRANCIS VENTURA on Jun 02, 2024
Verified
When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it,the statement is a(n) ________.
A) innocent misrepresentation
B) fraudulent misrepresentation
C) non-material misrepresentation
D) negligent misrepresentation
E) commercial disparagement
Negligent Misrepresentation
A false statement made carelessly that leads another to act on it to their detriment.
Reasonable Care
A legal standard that requires individuals to act with the same level of care that a reasonably prudent person would exhibit in the same situation.
- Distinguish between the legal consequences of innocent, negligent, and fraudulent misrepresentations.
Verified Answer
LG
Lindsay GilbertJun 06, 2024
Final Answer :
D
Explanation :
In some contract negotiations,one party makes a statement of material fact that he thinks is true,but he is negligent in making the assertion.Such a negligent misrepresentation results when the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it.
Learning Objectives
- Distinguish between the legal consequences of innocent, negligent, and fraudulent misrepresentations.