Jimmy sells an old station wagon to Mary and tells her that it is in excellent condition. He did not bother to verify the statement of the previous owner that the car was making strange noises. Under these circumstances, Mary could best contest the agreement on the grounds of _____.

Question

Quizplus · Accepted Answer

If it can be shown that a defendant actually knew that what he or she said was untrue, a "knowing" misstatement has been proven. It is also sufficient to show that the defendant possessed enough information so that he should have known the truth, even if he actually did not. Making statements without sufficient information to believe they are true (recklessness) is sufficient to constitute fraud. Under these circumstances, Mary could best contest the agreement on the grounds of fraud.

Jimmy Sells an Old Station Wagon to Mary and Tells