If misrepresentation causes a party to enter into a contract, that party may have the legal right to ____.
A) cancel the contract
B) seek reimbursement for damages
C) cancel the contract and seek reimbursement for damages
D) either cancel the contract or seek reimbursement for damages, but not both

Question

Quizplus · Accepted Answer

If a party is induced to enter into a contract due to misrepresentation, they may have the right to both cancel the contract (rescission) and seek reimbursement for damages incurred as a result of the misrepresentation.

If Misrepresentation Causes a Party to Enter into a Contract