If a Party to a Contract Makes an Innocent Misrepresentation

question 38

Multiple Choice

If a party to a contract makes an innocent misrepresentation, the other party will be entitled to:

• A)recover damages in the tort of negligence.
• B)recover damages in the tort of deceit.
• C)recover damages for breach of contract.
• D)terminate the contract.

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Definitions:

Total Asset Turnover

A financial gauge assessing how well a company employs its assets to create sales turnover.

Cash Dividend

A payout in cash form from a corporation's profits to the individuals holding its shares.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the assets of a corporation, after deducting liabilities.

Net Profit Margin Ratio

A profitability metric that calculates the percentage of revenue remaining as profit after all expenses are deducted from total sales.