Gina induces Hu to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features.When Hu discovers the truth,Hu can
A)not rescind the contract.
B)rescind the contract on the basis of fraud.
C)rescind the contract on the basis of mistake.
D)rescind the contract on the basis of undue influence.

Question

Quizplus · Accepted Answer

Hu can rescind the contract on the basis of fraud because Gina knowingly misrepresented material features of the condominium. Fraud involves intentional deception, and Hu relied on Gina's misrepresentations when entering into the contract. This gives Hu the right to rescind the contract and potentially seek legal remedies for any damages incurred as a result of the fraud. Options A, C, and D do not apply in this scenario.

Gina Induces Hu to Enter into a Contract for the Purchase