Reliance on a misrepresentation is not justified if it is based on an obviously extravagant statement.

Question

Quizplus · Accepted Answer

This is in line with the principle of reasonable reliance in contract law, which requires a party to exercise reasonable judgment and not rely on obviously false or implausible statements when entering into a contract. If a misrepresentation is obviously extravagant, a reasonable person would not rely on it and therefore cannot claim to have been deceived.

Reliance on a Misrepresentation Is Not Justified If It Is