Which of the following is true of misrepresentation?
A) An innocent party must have relied and acted on the misrepresentation for it to be actionable.
B) An innocent party who acts in reliance on a misrepresentation need not justify his or her reliance.
C) An innocent party must prove that the wrongdoer's misrepresentation was the sole reason he or she entered into the contract.
D) An innocent party need not prove economic injury to recover damages for fraud.

Question

Quizplus · Accepted Answer

For a misrepresentation to be actionable, an innocent party must have relied and acted upon it. This means that the innocent party must have taken some action or made a decision based on the misrepresentation, and suffered some damages or harm as a result. In other words, the innocent party must prove that he or she suffered some economic loss or injury as a direct result of the misrepresentation. The innocent party need not prove that the misrepresentation was the sole reason for entering into the contract; rather, it must be a contributing factor. Additionally, the innocent party need not justify his or her reliance, but must merely demonstrate that he or she reasonably believed the misrepresentation to be true.

Which of the Following Is True of Misrepresentation