John and Mary are thinking of buying a house. They see one they like and arrange to view it. The current owner, Emelda shows them over the house stating, "I've owned this house for 20 years, and it is completely sound. There are no problems." In fact, as John and Mary discover later, the house is infested with termites. If Emelda did not know there were termites, this would be an example of:

Question

Quizplus · Accepted Answer

Innocent misrepresentation occurs when a statement is made without knowledge of its falsity. In this case, Emelda did not know about the termite infestation, so her statement that the house was completely sound was made without knowledge of its falsity, making it an innocent misrepresentation.

John and Mary Are Thinking of Buying a House