A Seller Unknowingly Made a Misrepresentation During Negotiations to Sell

question 45

Multiple Choice

A seller unknowingly made a misrepresentation during negotiations to sell his car.Now that the seller is aware of the misrepresentation and the prospective buyer is returning to make an offer,what recourse is available to rectify the situation and accept the offer without risking an ensuing lawsuit?

• A) The seller has no recourse; once information is offered,it must be completely accurate.
• B) The seller can remain silent to secure the best price and plead mistake as a defence.
• C) The seller should simply forego the deal with this buyer and look for a new buyer.
• D) The seller must attend to the prompt disclosure of the correct facts to the prospective buyer.

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Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another, impacting international trade and investment.

Absolute Purchasing Power Parity

A hypothesis positing that when there are no transportation or transaction expenses, the same products in various nations ought to be priced equally if priced in the same currency.

Exchange Rate

The worth of one currency in relation to another for conversion purposes, specifying the amount of one currency that can be exchanged for another.