If a Party to an Existing Contract Discovers They Had

question 44

Multiple Choice

If a party to an existing contract discovers they had made an incorrect statement during the contract negotiations, then they should

• A) inform the other party of the true situation as soon as possible.
• B) call their lawyer before they are sued for negligent misrepresentation.
• C) declare the contract voidable at the option of the other party.
• D) rescind the contract immediately.
• E) offer to make allowances for any misunderstandings.

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Definitions:

CSB

Canadian Savings Bonds, a secure savings product issued and guaranteed by the Government of Canada.

Compound-Interest

A method of calculating interest where the amount is based on the initial principal and the interest that has been accumulated in past periods.

Compounded Quarterly

Involves calculating interest on an investment by adding the accrued interest back into the principal at the end of each quarter, effectively earning interest on interest.

GIC

Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period, typically without the risk of losing the principal invested.