The contract for the Surrey property had been signed by both parties.Which of the following is necessary for the contract to be set aside on the grounds of misrepresentation?
A) The misrepresentation must have been a false statement of a fact; false statements of opinion are never misrepresentations.
B) The misrepresentation must have been a term of the contract.
C) The misrepresentation must have induced the party to enter the contract.
D) The misrepresentation must have been in writing.
E) The misrepresentation must have been made recklessly or wilfully.

Question

Quizplus · Accepted Answer

In order for a contract to be set aside on the grounds of misrepresentation, it must meet all four elements: (1) there must be a false statement of fact or law, (2) the false statement must have induced the party to enter the contract, (3) the false statement must have been made by the other party, and (4) the false statement must be material to the contract. Choice C is correct because it addresses the second element, which requires that the misrepresentation must have induced the party to enter the contract.

The Contract for the Surrey Property Had Been Signed by Both