Ernie contracts to buy securities from Freda.Later,believing that Freda committed fraud in the deal,Ernie files a suit against her.If Freda is found liable,Ernie may obtain

Question

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If Freda is found liable for fraud in the securities deal, Ernie may be entitled to either damages to the extent of Freda's illegal profits or rescission of the contract to buy securities from Freda. This means Ernie can either seek compensation for the harm caused or undo the entire transaction as if it never happened. The other options of obtaining an apology or rescinding the contract without compensation do not provide adequate relief for Ernie's damages.

Ernie Contracts to Buy Securities from Freda