When One Party to a Contract Makes a Misrepresentation About

question 65

Multiple Choice

When one party to a contract makes a misrepresentation about the law,what is the deceived party able to do?

• A) The deceived party can usually rescind the contract.
• B) The deceived party can usually collect damages.
• C) The deceived party can never collect damages or rescind the contract because all parties to a contract are presumed to know the law, either on their own or by securing the services of an attorney.
• D) The deceived party usually has no remedy unless the party making the misrepresentation of law is a professional who should know the law and has intentionally misrepresented the law to a less sophisticated party.
• E) The deceived party can usually rescind the contract only if the contract involves an amount of over $500.

---

Definitions:

Believable

Capable of being accepted as true or realistic; convincing or credible.

Hindsight Bias

The inclination to see events that have already occurred as being more predictable than they were before they took place.

Critical Thinking

Dedicated to an in-depth inspection and critique of a problem with the intent of deriving a verdict.

Overconfidence

Overconfidence is a cognitive bias in which a person's subjective confidence in their abilities or outcomes exceeds the objective accuracy of those assessments.