Al induces Beth to enter into a contract for the purchase of a Chef's Burger restaurant. Al knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of
A) fraudulent misrepresentation.
B) undue influence.
C) mistake.
D) none of the choices.

Question

Quizplus · Accepted Answer

Al's misrepresentation is knowingly fraudulent and material, which gives Beth the right to rescind the contract on the basis of fraudulent misrepresentation. Undue influence requires a special relationship between the parties, and mistake would only apply if Beth had made an error regarding the terms of the contract. None of the other choices are applicable in this scenario.

Al Induces Beth to Enter into a Contract for the Purchase