Damages as a Remedy Will Not Be Available in Which

question 73

Multiple Choice

Damages as a remedy will not be available in which of the following situations?

• A) Jones, although being careful, makes an innocent misrepresentation persuading Smith to enter a contract with him.
• B) Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him.
• C) Jones makes a negligent misstatement, persuading Smith to enter a contract with him.
• D) A false statement made by Jones becomes a term of the contract.
• E) Jones makes an intentional misrepresentation of fact in order to get Smith to sign the agreement.

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Definitions:

Work Sheet

An informal document used by accountants to organize and consolidate financial information for the preparation of financial statements.

Balance Sheet

A balance sheet that illustrates a corporation's resources, outstanding debts, and the net worth held by shareholders at a pinpointed moment.

Statement of Retained Earnings

A financial statement that shows changes in a company's retained earnings over a specific period.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, resulting in net profit or loss.