- People may be held responsible for misrepresentations, even if they did not say anything,
all of the above
- Which of the following statements is TRUE with respect to misrepresentations?
An innocent misrepresentation may be rescinded
- An exception to the parol evidence rule may arise if
additional information is required in order to rectify a mistake
- Which of the following statements is TRUE with respect to a contractual clause that
protects one party from the consequences of breach?
Depending upon the circumstances, such clauses may be enforced even if the party
who wants to sue for breach did not read the clause
- Jacqui purchased a business from Dickie. During the pre-contractual negotiations, Dickie
said, based on past experience, he expected that the business would earn approximately
$1 000 000 per year. After that statement was made, but before the contract was signed,
Dickie learned that the manufacturer that supplied his business with the materials that it
needed was going out of business. Dickie realized that, because of the need to purchase
materials from another manufacturer, his business could only be expected to earn $700
000 per year, regardless of whether it was run by himself or by Jacqui. Afraid that that
news would scare off Jacqui, Dickie decided to keep the new information to himself.
Jacqui completed the purchase of Dickie's business, but was very disappointed when it
earned only $700 000 in its first year. She now wants to sue Dickie. Which of the
following statements is TRUE?
none of the above
- Leilani purchased a business from Troy. She is now interested in the possibility of taking
legal action on the basis of an alleged misrepresentation that occurred during the
negotiations leading up to the contract. Which of the following statements is TRUE?
If Troy made a negligent misrepresentation, Leilani may choose to sue in tort rather
than rescind the contract
- Asif purchased a business from O