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First Principles of Business Law |
| Circumstances that may invalidate a legal transaction |
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6. Misrepresentation |
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6.2. Deliberate (intentional) misrepresentation |
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Read the facts and the question and then choose the best answer. A owns a Ferarri sports car. While driving it he is involved in an accident which causes fairly serious damage to the car. The car is fully repaired but A decides to sell it. He advertises the car in the local newspaper. B sees the advertisement and comes to inspect the car. After checking it carefully, B says: "It looks like it's never had a scratch." A, anxious to make the sale, replies, "Yes, you won't find a scratch anywhere." He says nothing about the accident. B agrees to buy the car for $100,000. When B discovers later that the car was damaged in an accident and has been repaired, he wants to either avoid the sale altogether, or to claim damages from A. In these circumstances, what relief is available to B? |
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