Asked by Estefanie Estupinan on May 30, 2024
Verified
Which of the following is true of the remedies for misrepresentation and fraud?
A) All states allow a victim of fraud to rescind and sue for damages.
B) A person can claim punitive damages for fraud under the tort of misrepresentation.
C) The contractual remedy for innocent misrepresentation is rescission.
D) Ratification enables the right to rescind a contract.
Innocent Misrepresentation
A false statement made without knowledge of its falsity, leading another to enter into a contract they otherwise might not have.
Remedies
Legal means through which a right is enforced or a violation of a right is compensated.
Fraud
Intentional deception made for personal gain or to damage another individual.
- Identify the remedies available for misrepresentation and fraud in contracts.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
C
Explanation :
The contractual remedy for innocent representation as well as fraudulent representation is rescission.A person who commits fraud may be liable for damages,possibly including punitive damages for the tort of deceit.In some states,a person injured by fraud cannot rescind the contract and sue for damages.Ratification ends the right to rescind.
Learning Objectives
- Identify the remedies available for misrepresentation and fraud in contracts.
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