Misrepresentation of Law Will Be Allowed as Grounds for Rescission

question 38

True/False

Misrepresentation of law will be allowed as grounds for rescission of the contract if one party to the contract is a professional who should know what the law is and intentionally misrepresents the law to a less sophisticated contracting party.

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Definitions:

Preferences

The subjective tastes or desires of individuals or entities, which determine their choices among various options.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, contrasting with normal goods.

Price Increase

A rise in the cost of goods or services.

Revealed Preference

A theory that determines consumer preferences based on observing their choices and behavior, assuming consistency in their decision-making.