It is important to distinguish between representations and terms because:

Question

BlackTom AI · Accepted Answer

Here is a careful check of each statement in light of why distinguishing representations from terms matters in contract analysis.
Option a: There is no remedy for misrepresentation. This is inaccurate because misrepresentation can give rise to remedies such as rescission and, in cases of fraud or negligent misrepresentation, damages. The distinction between representations and terms influences what remedies apply, not an absolute absence of remedies.
Option b: The remedy of rescission is not available for misrepresentation. In fact, rescission is a classic remedy for misrepresentation, whether it is innocent, negligent, or fraudulent, provided the misrepresentation is material and the party seeking rescission has not affirmed the contract or otherwise waived the right. Therefore this statement is incorrect.
Option c: Damages cannot be awarded for misrepresentation. This blanket statement is too broad and misleading. While innocent misrepresentation typically does not support damages in many jurisdictions (only rescission or possibly damages under specific statutory regimes or for negligent/fraudulent misrepresentation), fraud and negligent misrepresentation do support damages in many legal systems. So claiming there are no damages at all is wrong.
Option d: Damages can only be awarded for fraudulent or negligent misrepresentation. This option captures a key nuance: damages are typically available where the misrepresentation is fraudulent (deliberate falsehood) or negligent (carelessness leading to false statements), whereas innocent misrepresentation generally leads to rescission as the primary remedy (and damages may be unavailable unless a specific rule or statute applies). Recognizing this distinction explains why damages are not available for all misrepresentations, only for the more culpable types. This makes this option the most accurate statement among the choices.

Dashboard Assessment 2 - Online Quiz

It is important to distinguish between representations and terms because:

View Explanation

Log in for full answers

Similar Questions

Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only six months old but, in fact, it is three years old, and Jennifer wants to get rid of it. Jack agrees to buy the computer based on Jennifer's representations. This contract is:

In selling a 600-acre farm to Family Farms, Inc., Jake tells the buyer that the land "will be worth twice as much by next year." This statement is not likely to support rescission of the contract because it is

Steve sells Bruno a car. After they agreed on the deal, but before the money was handed over, Bruno asks Steve is the car has any oil leaks, Steve says it does not. The car did have leaks and Bruno wants to sue Steve. Which one of the following cases would best apply to this situation:

A retailer describes a table as "solid oak" when it's actually oak veneer over particleboard. The customer buys it specifically wanting solid wood. Which factor would MOST likely defeat a misrepresentation claim?

The term _____ is used to describe misstatement or incomplete statement of a material fact.

Reilly makes a misrepresentation to Sonny, a consumer, who buys Reilly’s product. In using the product, Sonny suffers an injury. To serve as a basis for recovery, the misrepresentation must be

In a consumer society, many adults channel creativity into buying things

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler