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Angel Cabrera Owns a Store and Is Showing It to Crista

Question 15

Multiple Choice

Angel Cabrera owns a store and is showing it to Crista D Alimonte who wants to lease it to run a coffee shop. Angel thinks he saw a newspaper report that a new bus route with a main stop across from the shop was to be started soon. He tells Crista that a new bus stop is soon to be established. She signs a lease that sets out only the rental amount and the length of the lease. There is no mention of the bus stop. It turns out the city had never said it was planning a new bus route in this area, it was in a different part of the city. Which of the following is TRUE?


A) Cirsta has no remedy because there is no term in the lease guaranteeing that a bus stop would be started at that location.
B) Crista has no remedy because Angel honestly believed a bus stop would be started at that location.
C) The statement by Angel was an innocent misrepresentation.
D) The statement by Angel was a negligent misrepresentation.
E) The statement by Angel was a fraudulent misrepresentation.

Correct Answer:

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