Damages as a remedy will not be available in which of the following situations?
A)Jones makes a negligent misstatement, persuading Smith to enter a contract with him.
B)Jones, although being careful, makes an innocent misrepresentation, persuading Smith to enter a contract with him.
C)Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him.
D)A false statement made by Jones becomes a term of the contract.
E)None of the above

Question

Quizplus · Accepted Answer

Damages are typically not available for innocent misrepresentation, as it is not based on negligence or fraud. Instead, rescission is the usual remedy.

Damages as a Remedy Will Not Be Available in Which