Alice offers Richard a chance to work in her affiliate marketing program which,she claims,will make him a millionaire in three months.Richard makes the "mandatory investment" of $12,000 and becomes an affiliate.Soon,he realizes that such a program does not exist and that Alice has disappeared with the money.This is an instance of ________.

Question

Quizplus · Accepted Answer

This is an instance of fraud in the inducement, where Alice made false promises to Richard in order to induce him to invest $12,000 in her affiliate marketing program. Since Alice knew that her promises were false, this constitutes fraud. Misrepresentation of law would involve a false statement about the law, and fraud in the factum would involve a misrepresentation about the nature of the contract itself. Duress would involve a situation where Richard was forced to enter into the contract under threat of harm or other coercion.

Alice Offers Richard a Chance to Work in Her Affiliate