Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact. In this case:
A) Chet may avoid the contract.
B) Rosalind may avoid the contract.
C) either or both Chet or Rosalind may avoid the contract.
D) neither Chet nor Rosalind may avoid the contract.

Question

Quizplus · Accepted Answer

Rosalind may avoid the contract because Chet's material misrepresentation of fact about the horse could be considered fraudulent or misleading, giving Rosalind grounds to rescind the contract.

Chet Makes a Material Misrepresentation of Fact Regarding His Horse