Is the impact of negligent misrepresentation the same as that for fraudulent misrepresentation?

A) Yes, they are identical. The contract is void as a matter of law.
B) Yes, they are identical. The contract can be rescinded.
C) Yes, they are identical. The contract can be rescinded, but the misled party cannot sue for damages.
D) No, in negligent misrepresentation, the contract is void. In a case of fraudulent misrepresentation, the contract can be rescinded.
E) No, in fraudulent misrepresentation, the contract is void. In a case of negligent misrepresentation, the contract can be rescinded.

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Alejandro Perez Arnaiz · Accepted Answer

Final Answer : B, Explanation :  Negligent misrepresentation and fraudulent misrepresentation both allow the misled party to rescind the contract. However, the nature of the misrepresentation (negligent vs. fraudulent) can affect the availability of damages and other remedies.

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