Which of the Following Contracts Would Be Void Due to Fraudulent

question 91

Multiple Choice

Which of the following contracts would be void due to fraudulent misrepresentation?

• A) Mikhail wants Ivana to sign a contract for the sale of her apartment. He tells her that if she does not sign the contract, he will harm her son.
• B) Janet owns a pair of zircon earrings. She sells them claiming they are diamonds and receives a much higher price for them.
• C) Carla unknowingly sells a painting to a collector thinking it's genuine. However, the collector finds out that it actually is an imitation.
• D) Gary has been the McGill family attorney for decades. When he needs investors for his business, he convinces Mr. McGill to invest in the new business.

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Definitions:

Comparative Income Statement

A financial statement that presents the revenues, expenses, and net income for multiple periods side by side for comparative purposes.

Sales

Transactions involving the exchange of goods or services for money or its equivalent.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A liquidity measure indicating a company’s ability to meet short-term obligations with its short-term assets.