Asked by jacob azukas on Jul 08, 2024
Verified
Tom tries to sell his Aston-Martin to Victoria for $12,000. Tom tells Victoria, "I paid $12,000 for the car in 1978 and it's worth twice that today." Tom really paid $8,000 for the car in 1978. If Victoria buys the car, basing her decision on Tom's statement, which of the following correctly states the situation?
A) Tom's statements amount to puffing only.
B) Tom's statements provide grounds to set the contract aside.
C) Tom's statements are actionable only if intentional.
D) Tom's statements amount to fraud in the execution.
Puffing
In sales, puffing refers to exaggerated or hyperbolic statements about a product or service that are subjective opinions, not intended to be taken as facts.
Fraud In The Execution
A deceitful practice in legal dealings where a person is deceived into signing a document not knowing its true nature.
- Develop an understanding of and pinpoint the assorted kinds of distortions along with their requisite measures for correction.
- Familiarize oneself with the idea of scienter in association with deceit in contracts.
Verified Answer
SW
Shay-La WinnsJul 14, 2024
Final Answer :
B
Explanation :
Tom's false statement about the original purchase price to persuade Victoria to buy the car at a specific price can be considered a material misrepresentation, providing grounds to set the contract aside if Victoria relies on this misinformation in her decision to purchase the car.
Learning Objectives
- Develop an understanding of and pinpoint the assorted kinds of distortions along with their requisite measures for correction.
- Familiarize oneself with the idea of scienter in association with deceit in contracts.
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