Emery is an agent for Downtown Market Corporation.Emery makes an innocent mis?representation when entering into a contract on be?half of Downtown Market with Cool Fruits,Inc.Cool Fruits

Question

Quizplus · Accepted Answer

Since Emery made an innocent misrepresentation, Cool Fruits may rescind the contract if they choose to do so. They are not bound by the terms of the contract if they can prove that Emery's misrepresentation was a material fact that induced them to enter into the contract. Cool Fruits is not directly responsible for performing the contract, nor are they estopped from performing the contract. They may choose to ratify the contract, but this would not be required.

Emery Is an Agent for Downtown Market Corporation