Which of the following is true of the difference between fraud and misrepresentation?
A) There is no requirement of materiality in fraud cases, whereas misrepresentation requires materiality.
B) Unlike misrepresentation, the injured party in fraud cases has the additional option of suing in tort for damages.
C) Misrepresentation requires knowledge of the falsity of the misstatement, but fraud doesn't.
D) False statements of opinion can be fraud, but not misrepresentation.

Question

Quizplus · Accepted Answer

The buyer who can prove fraudulent misstatements or failure to disclose on the part of the seller has a choice of remedies. He or she may rescind the contract, like the buyer who can prove only misrepresentation. A defrauded buyer also has the option of affirming the contract and suing in tort for damages resulting from the fraud. This is so because the elements of fraud are the same as the elements for the tort of deceit.

Which of the Following Is True of the Difference Between