Asked by Jamilla Cason on May 11, 2024
Verified
Which of the following is/are available to a party who was misled by a false statement contained in an innocent misrepresentation?
A) Rescission of the contract only
B) Compensatory damages and rescission of the contract
C) Punitive damages,compensatory damages,and the right to rescind the contract
D) Exemplary damages,compensatory damages,and the right to rescind the contract
E) Nominal damages only
Innocent Misrepresentation
A false statement made without knowledge of its falsity, not intended to deceive, which can lead to a contract being voided if relied upon by the other party.
Rescission
The legal remedy of canceling, terminating, or annulling a contract and restoring the parties to their original positions as if the contract had never been made.
Compensatory Damages
Financial compensation awarded to a plaintiff to cover losses or injuries that have been directly caused by the actions of the defendant.
- Identify the legal outcomes associated with innocent, negligent, and fraudulent misrepresentations.
Verified Answer
AD
Adora DiuguMay 16, 2024
Final Answer :
A
Explanation :
Innocent misrepresentations permit the party that was misled by the false statement to rescind the contract.However,because the party that made the false statement had no intent to mislead,the aggrieved party cannot sue for damages.
Learning Objectives
- Identify the legal outcomes associated with innocent, negligent, and fraudulent misrepresentations.