The practical difference between the remedies for misrepresentation and fraud is that:
A) a victim of misrepresentation can sue for punitive damages, whereas a victim of fraud cannot.
B) a victim of fraud can sue for punitive damages as well as for damages from the tort of deceit.
C) a victim of fraud cannot sue for punitive damages.
D) a victim of misrepresentation cannot rescind the contract.

Question

Quizplus · Accepted Answer

A defrauded buyer has the option of affirming the contract and suing in tort for damages resulting from the fraud. This is so because unlike misrepresentation, the elements of fraud are the same as the elements for the tort of deceit. The buyer could recover actual damages resulting from the fraud and also be able to get punitive damages since fraud is intentional wrongdoing.

The Practical Difference Between the Remedies for Misrepresentation and Fraud