Zach owns property that he believes is worth $400,000.Chloe knows that there is gold on the property and offers Zach $500,000 for it.Zach accepts and sells the property to Chloe.Zach later realizes that the property was worth more than $500,000.Zach can have the contract avoided based upon fraud.

Question

Quizplus · Accepted Answer

The statement does not meet the legal definition of fraud. Fraud typically involves intentional misrepresentation or deception. Chloe did not deceive Zach; rather, Zach made a mistake in not properly assessing the value of his property. Therefore, Zach cannot have the contract avoided based on fraud.

Zach Owns Property That He Believes Is Worth $400,000