Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to
A) recover damages.
B) rescind the contract.
C) undo Eve's influence.
D) punish the defendant.

Question

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to​
A) ​recover damages.
B) ​rescind the contract.
C) ​undo Eve's influence.
D) ​punish the defendant.

Quizplus · Accepted Answer

In order to recover damages in a fraud case, proof of an injury is required. Don must demonstrate to the court that he suffered financial harm as a result of Eve's misrepresentations. Rescinding the contract, undoing Eve's influence, and punishing the defendant are all possible outcomes of the case, but they are not dependent on proof of injury.

Don Enters into a Contract with Eve, Who Claims to Have