Akon had an idea for a website called "Fantrace," a site that would help celebrities connect with their fans.Akon entered into an agreement with Broomfield for his help in building the site and Khalilian to help with marketing.Broomfield had recommended his friend,Khalilian,for the project because of his connections with celebrities.However,Broomfield did not tell Akon that he knew that Khalilian was a liar and that he had also been in prison.When things did not go well in working with the two,Akon sought to set aside the contract on the grounds of misrepresentation.Which of the following is correct?
A)Withholding information is not misrepresentation.
B)Broomfield had no obligation to make any disclosures about his friend.
C)Akon can have the contract rescinded on the grounds of misrepresentation.
D)Intent is not present, so there is no case for misrepresentation.

Question

Quizplus · Accepted Answer

Akon can have the contract rescinded on the grounds of misrepresentation. Broomfield had a duty to disclose any material information that may have influenced Akon's decision to enter into the agreement. By withholding information about Khalilian's history, Broomfield misrepresented his connection with Khalilian and potentially influenced Akon's decision to work with him. Withholding information can be a form of misrepresentation, and intent does not need to be present for misrepresentation to occur.

Akon Had an Idea for a Website Called "Fantrace," a Site