How Does Misrepresentation Differ from a Breach of Contract

question 5

Multiple Choice

How does misrepresentation differ from a breach of contract?

• A) Misrepresentation refers to statements made prior to entering into a contract.
• B) Misrepresentation must be intentional in order to be actionable.
• C) Misrepresentation only applies if the parties are in a relationship of utmost good faith.
• D) Proof of misrepresentation alone is insufficient for the courts to rescind a contract.

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Definitions:

General Price Level

A measure of the average price of goods and services in an economy at a given time, reflecting inflation or deflation trends.

Systematic Risk

Risk factors common to the whole economy; also called market risk or nondiversifiable risk.

Diversified Portfolio

An investment strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk.

Rate of Return

A financial metric used to calculate the percentage profit or loss of an investment relative to its cost.