Sadie convinced Brenda to buy her gas station for $300,000 by stating that she had paid $250,000 for it ten years earlier and that her net average annual profit from the business has been $80,000. In reality she paid $100,000 for the gas station and it has earned a net average annual profit of only $40,000. Brenda made no attempt to verify the statements until after the transaction was completed. In this case:

Question

Quizplus · Accepted Answer

Sadie has committed fraudulent misrepresentation by providing false information about the purchase price and profits of the gas station, which induced Brenda to enter into the contract.

Sadie Convinced Brenda to Buy Her Gas Station for $300,000