Asked by Mikey Grauso on May 10, 2024
Verified
Steven makes a material misrepresentation of fact regarding his motorcycle to Huong who agrees to buy the motorcycle based upon the misrepresentation. This contract is:
A) void.
B) voidable.
C) executed.
D) unenforceable.
Material Misrepresentation
A statement that is significantly untrue or misleading and, if known to be such, could have influenced the decision-making of a party in a contract or agreement.
Voidable
A legal term describing a transaction or agreement that is valid but may be annulled by one of the parties involved.
- Understand the conditions under which a contract becomes cancelable due to vital misrepresentation.
Verified Answer
SS
Svitlana SoltysMay 15, 2024
Final Answer :
B
Explanation :
A contract is voidable if one party to the contract has made a material misrepresentation of fact upon which the other party has relied to their detriment. In this case, since Steven made a material misrepresentation regarding the motorcycle to Huong, who agreed to buy it based on that misrepresentation, Huong has the right to void the contract.
Learning Objectives
- Understand the conditions under which a contract becomes cancelable due to vital misrepresentation.