Brian 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 Brian accepts, without correcting his earlier misrepresentation of fact. In this case:
A) Brian may avoid the contract.
B) Rosalind may avoid the contract.
C) either or both Brian or Rosalind may avoid the contract.
D) neither Brian nor Rosalind may avoid the contract.

Question

Quizplus · Accepted Answer

Rosalind may avoid the contract because Brian made a material misrepresentation of fact regarding the horse and did not correct it before accepting Rosalind's offer to buy the horse. This constitutes fraud and gives Rosalind the right to rescind the contract. Brian cannot avoid the contract because he did not rely on any misrepresentation in accepting Rosalind's offer.

Brian Makes a Material Misrepresentation of Fact Regarding His Horse