If innocent misrepresentation exists, the party who relied on it, upon learning the facts, should
A) forfeit any claim to compensation or indemnity expenses.
B) wait a reasonable length of time to respond.
C) renounce the agreement promptly.
D) prepare a formal protest.
E) take any further benefits.

Question

Quizplus · Accepted Answer

When innocent misrepresentation occurs, the party who relied on it has the right to renounce the agreement promptly upon learning the true facts. This allows for rescission of the contract and avoidance of any further obligations or harm. It is not appropriate to forfeit any claim to compensation or indemnity expenses, wait a reasonable length of time to respond, prepare a formal protest, or take any further benefits as these actions do not address the issue of the misrepresentation.

If Innocent Misrepresentation Exists, the Party Who Relied on It