Identify the difference between a case involving intentional fraud and innocent misrepresentation.
A)The contractual remedy of rescission is not available in a misrepresentation case.
B)A person committing innocent misrepresentation is liable for punitive damages for the tort of deceit.
C)Reasonable reliance of the complaining party is not required in a fraud case.
D)Materiality is not required in a fraud case.

Question

Identify the difference between a case involving intentional fraud and innocent misrepresentation.
A)The contractual remedy of rescission is not available in a misrepresentation case.
B)A person committing innocent misrepresentation is liable for punitive damages for the tort of deceit.
C)Reasonable reliance of the complaining party is not required in a fraud case.
D)Materiality is not required in a fraud case.

Quizplus · Accepted Answer

If the misrepresentation was innocent,the person seeking to rescind the contract must establish that the fact asserted was material.Even if the fact asserted was not material,the contract may be rescinded if the misrepresentation was fraudulent,the rationale being that a person who fraudulently misrepresents a fact,should not be able to profit from his intentionally deceptive conduct.

Identify the Difference Between a Case Involving Intentional Fraud and Innocent