________ occurs when the party knows what he or she is signing but has been fraudulently been led into the contract.
A)Fraud in the factum
B)Fraud in the inducement
C)Fraud by concealment
D)Misrepresentation of law

Question

Quizplus · Accepted Answer

Fraud in the inducement occurs when one party is aware of the general nature of the contract but has been fraudulently induced into it by misrepresentations or concealment of material facts. This is different from fraud in the factum, which occurs when a party does not know they are signing a contract or the nature of the document they are signing, and misrepresentation of law, which involves a party knowingly misrepresenting the law to deceive the other party. Fraud by concealment refers to a situation where one party actively conceals a material fact from the other party in order to induce them into the contract.

________ Occurs When the Party Knows What He or She