To Sustain a Case of Fraud in the Inducement, the Injured

question 12

True/False

To sustain a case of fraud in the inducement, the injured party must prove that he actually relied upon the false representation.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing participants in an arm's length transaction.

Historical Cost

The original monetary value of an economic item. Historical cost is based on the stable measuring unit assumption.

Capital Stock

The amount of ownership shares of a company, including both common and preferred stock, authorized and issued to investors.

Stated Value

An arbitrary value assigned to a company's share that does not have a par value, used for accounting purposes.