Asked by
KAYLENDAYNE ROYER
on Nov 29, 2024Verified
Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive model than he originally contemplated, Matt tells Bob, "This is the most awesome bike money can buy at this price. You can expect lots of riding pleasure." Based on this statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a far superior bike for a lower price at another store. Bob can avoid his contract with Matt because of fraudulent misrepresentation.
Fraudulent Misrepresentation
An intentional false statement of a material fact made by one party to another, with the intent to induce the other party to act or refrain from acting based on the falsehood.
Contract
An agreement between two or more parties that is recognized and enforceable by law.
- Understand the concept of fraudulent misrepresentation and its implications on contract validity.
Verified Answer
BB
Learning Objectives
- Understand the concept of fraudulent misrepresentation and its implications on contract validity.
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