To induce the sale of an auto parts business, Carmel fraudulently represents the worth of the inventory to Drew, who offers an inflated price. They enter into a contract to close the deal. On closer inspection, the buyer learns the true value of the goods. Drew can

Question

Quizplus · Accepted Answer

Drew can rescind the contract because it was entered into based on fraudulent misrepresentation by Carmel regarding the worth of the inventory. Rescinding the contract would nullify it, as if it never existed, due to the fraudulent circumstances under which it was made.

To Induce the Sale of an Auto Parts Business, Carmel