Assuming that Lucy fraudulently made a misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct,which of the following is true,considering only the lack of a spring issue,if Marcy does not want to go through with the sale?
A) Marcy may rescind the contract and recover compensatory damages.
B) Marcy may rescind the contract, but she may not recover damages.
C) Marcy may sue for damages, but she may not rescind the contract.
D) Marcy may rescind the contract, or she may keep the contract and sue for damages.
E) Marcy must allow Lucy an opportunity to cure, or fix, the problem; and in the event that is not done, she may not rescind the contract although she can sue for damages.

Question

Quizplus · Accepted Answer

The effect of both a negligent misrepresentation and a fraudulent misrepresentation is that the victim can either rescind the contract or keep the contract and sue for damages, whereas if the mistake is innocent, the victim can seek only rescission.

Assuming That Lucy Fraudulently Made a Misrepresentation Regarding the Spring