Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees.She discovers the misrepresentation after she has resold some products that she has received but before she has paid Fun Foods for the products.Holly wants to cancel the franchise contract on the basis of the fraud.What is the remedy available to her?

Question

Quizplus · Accepted Answer

To prevent unjust enrichment,the courts imply as a matter of law a promise by the benefited party to pay the reasonable value of the benefits he received.This is called quasi-contract because it represents an obligation imposed by law to avoid injustice,not a contractual obligation created by voluntary consent.

Fun Foods Fraudulently Induces Holly to Buy a Household Products