Salvatore and Carolyn conducted lengthy negotiations that led to her purchase of his business. At the start of those negotiations, Salvatore made a number of statements regarding the business's profitability. Those statements were accurate when they were made. However, before the sale was finalized, the facts changed such that the earlier statements were no longer true. Salvatore knew of that change, but he did not provide Carolyn with updated information. Consequently, he may be held liable to her under the tort of deceit.

Question

Quizplus · Accepted Answer

Salvatore's failure to update Carolyn with the new information, knowing that the initial statements were no longer true, constitutes a misrepresentation, which can lead to liability under the tort of deceit.

Salvatore and Carolyn Conducted Lengthy Negotiations That Led to Her