Misrepresentation

Introduction

Read the overview below and complete the activities that follow.

In this activity, you will be distinguishing between different types of misrepresentation. Before beginning, you should have read the "Misrepresentation" section in your text. Pay special attention to the different types of misrepresentation: innocent, negligent, and fraudulent misrepresentation.

CONCEPT REVIEW:

Misrepresentations are similar to mistakes in that at least one of the parties is in error about a fact material to the agreement. But a misrepresentation is an untruthful assertion by one of the parties about that material fact; it prevents the parties from having the mental agreement necessary for a legal contract. They only appeared to agree, so the contract lacked legal assent.

Scroll over the title labels to reveal a scenario or explanation. Then, match the scenario to the appropriate section of the Venn diagram. You may not need to use every area.

Untruthful Assertion $$New Stereo$$ Rescission Lack of Scienter Sue for Damages Easily Discoverable Changed Odometer

Match each of the options above to the items below.

Innocent

No answer

Negligent

No answer

Fraudulent

No answer

Innocent$/$Fraudulent

No answer

Innocent$/$Negligent

No answer

Negligent$/$Fraudulent

No answer

Innocent$/$Negligent$/$Fraudulent