Zach owns property that he believes is worth $400,000.Chloe knows that there is gold on the property and offers Zach $500,000 for it.
She says she would like to live in the country.Zach then asks her if she thinks there might be valuable minerals on the land.Chloe laughs and says she doubts that very much,so Zach sells her the farm for $500,000.Zach later realizes that the land was worth more than he was paid.Chloe's statement to Zach was a misrepresentation requisite for fraud.

Question

Quizplus · Accepted Answer

Chloe's statement was a misrepresentation because she knew there was gold on the land but told Zach there were no valuable minerals. This misrepresentation would constitute fraud.

Zach Owns Property That He Believes Is Worth $400,000