Which of the following statements is the best description of an 'innocent' misrepresentation?

Question

Quizplus · Accepted Answer

An innocent misrepresentation occurs when someone makes a false statement of fact with the belief that it is true, which the other person relies upon and suffers a loss. It differs from a fraudulent misrepresentation (answer B) because the person making the statement does not know it is false. It also differs from a negligent misrepresentation (answer D) because the person making the statement is not being careless, but rather genuinely believes it to be true. Answer A describes a situation where information is not disclosed, but it does not necessarily involve a false statement of fact.

Which of the Following Statements Is the Best Description of an 'Innocent