Fess convinces Gwyn to enter into a contract for the purchase of a Falafel Waffle Food Cart by knowingly misrepresenting a number of material features about the facility and the business. Most likely, Gwyn can rescind the contract on the basis of
A)fraudulent misrepresentation.
B)negligent misrepresentation.
C)innocent misrepresentation.
D)none of the choices.

Question

Quizplus · Accepted Answer

Fraudulent misrepresentation occurs when one party knowingly makes a false statement of material fact, intending the other party to rely on it, and the other party does rely on it to their detriment. Since Fess knowingly misrepresented material features about the facility and the business, Gwyn can most likely rescind the contract on the basis of fraudulent misrepresentation.

Fess Convinces Gwyn to Enter into a Contract for the Purchase