In negotiating a contract with Mikayla for the use of an empty bottling plant to bottle and market natural spring water,Nero makes a statement that he believes not to be true with respect to a material fact in the deal.Nero is guilty of
A)a mistake.
B)fraud.
C)puffery.
D)nothing.

Question

Quizplus · Accepted Answer

Nero's statement that he knows to be untrue with respect to a material fact in the deal constitutes fraud. Fraud involves making false statements with the intent to deceive the other party and induce them into entering a contract.

In Negotiating a Contract with Mikayla for the Use of an Empty