Asked by
Nahime Tanuz
on Dec 20, 2024
Verified
Al owns a farm that he believes is worth $150,000. Betty knows that there is oil under the farm and offers Al $160,000 for it. Al is suspicious and asks her why she wants to buy the place. She says she would like to live in the country. Al then asks her if she thinks there might be valuable minerals under the land. Betty laughs and says she doubts that very much, so Al sells her the farm for $160,000. Al later realizes that the land was worth more than he was paid. Al can have the contract voided based upon fraud.
Fraud
Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.
- Understand thoroughly and identify the multiple variants of misrepresentations and the conditions necessary for their remedy.
- Gain insight into the concept of scienter with regards to fraudulent activities in contractual dealings.
Verified Answer
LE
Learning Objectives
- Understand thoroughly and identify the multiple variants of misrepresentations and the conditions necessary for their remedy.
- Gain insight into the concept of scienter with regards to fraudulent activities in contractual dealings.