Fact Pattern 15-B3 (Questions B14-B15 apply)
In selling a commercial building,Birdie tells Colt that the property has a certain capacity,making it suitable for a nightclub.Birdie knows nothing about the capacity of the building,but it is not as she specifies.Colt buys the building.
-Refer to Fact Pattern 15-B3.On learning the truth,Colt confronts Birdie,who says she was not trying to fool him-she was only trying to make a sale.This is
A)a mistake of value.
B)a valid defense to a charge of fraud.
C)negligent misrepresentation.
D)unconscionable.

Question

Quizplus · Accepted Answer

Birdie made a negligent misrepresentation by falsely stating that the property had a certain capacity without any knowledge of the actual capacity. Her assertion was inaccurate and she acted recklessly by making a statement without verifying its validity, making her liable for any damages incurred by Colt as a result of her misrepresentation. Her statement was not a mistake of value because she had no knowledge of the property's capacity, and it is not a valid defense to a charge of fraud. The situation also does not meet the definition of being unconscionable.

Fact Pattern 15-B3 (Questions B14-B15 Apply)