A misrepresentation of law is allowed as grounds for rescission of a contract if one party to the contract is a professional who should know what the law is and intentionally misrepresents the law to a less-sophisticated contracting party.

Question

Quizplus · Accepted Answer

This statement is generally true. Under the legal principle of fraudulent misrepresentation, a party to a contract who intentionally and knowingly misrepresents a material fact to another party can be held liable for fraud and the contract may be rescinded. This can include misrepresentations of law, and if the misrepresenting party is a professional with specialized knowledge of the law, they may be held to an even higher standard of care. However, the specific requirements for fraudulent misrepresentation vary by jurisdiction and depend on the facts of the case.

A Misrepresentation of Law Is Allowed as Grounds for Rescission