Gina induces Hugh to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features.When Hugh discovers the truth,he can
A)not rescind the contract.
B)rescind the contract on the basis of fraud.
C)rescind the contract on the basis of mistake.
D)rescind the contract on the basis of undue influence.

Question

Quizplus · Accepted Answer

Hugh can rescind the contract on the basis of fraud because Gina induced him to enter the contract by knowingly misrepresenting material features of the condominium. Fraudulent misrepresentation can nullify the formation of a contract and provide grounds for rescission. Rescission would mean that the parties are released from their contractual obligations and positions are restored to what they were before the contract was formed.

Gina Induces Hugh to Enter into a Contract for the Purchase