Tyra was looking to buy her first motorcycle.She saw one listed online and contacted Graham, the owner.Graham knew that the transmission was faulty and the bike often failed to shift properly.He decided not to mention that problem, however, because it did not happen all the time.He also decided that he did not want to deal with any of Tyra's questions.He therefore asked her to come by, for her test dive, when he knew that he would be out of the house but his mother would be home.Tyra enjoyed the test ride, did not ask any questions, and bought the bike for the full price.Which of the following statements is most likely to be TRUE?
A) Silence can never be misrepresentation.
B) Graham's silence was misrepresentation because the contract required utmost good faith.
C) Graham's actions constituted a misrepresentation because he was not present for the test drive, which means that he was actively concealing the damage.
D) Graham's silence constituted a half-truth.
E) Graham was not required to disclose the problem in pre-contractual relations.
Correct Answer:
Verified
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