In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if
A)Nan is not aware of the fact.
B)the fact concerns the value or quality of the freezers.
C)the fact is a serious defect known to Nan but not to Marc.
D)any of the choices.

Question

Quizplus · Accepted Answer

Fraudulent misrepresentation involves knowingly making a false statement or concealing a fact that is material to the contract, with the intention that the other party relies on it. In this scenario, Nan's failure to disclose a serious defect in the freezers that she is aware of, but Marc is not, fits the definition of fraudulent misrepresentation.

In Entering into a Contract with Marc for the Sale