Which of the following is true of misrepresentation of a material fact?
A) It can occur only by the words of the wrongdoer.
B) A misrepresentation is actionable as fraud only if it is the sole factor in inducing the innocent party to enter into the contract.
C) It is actionable as fraud if the misrepresentation is of a past or existing material fact.
D) Predictions about the future are considered basis for fraud.

Question

Quizplus · Accepted Answer

Misrepresentation of a past or existing material fact is actionable as fraud. Predictions about the future are generally not considered a basis for fraud, unless the speaker knowingly does not believe in the prediction or has no basis for making it. Misrepresentation can occur by words, actions, or silence (in certain circumstances). A misrepresentation need not be the sole factor in inducing the other party to enter into the contract; it is enough that it was one of the factors.

Which of the Following Is True of Misrepresentation of a Material