Asif Purchased a Business from Olga

question 11

Multiple Choice

Asif purchased a business from Olga.During negotiations leading up to the contract, Olga made an innocent misrepresentation.As a result of that statement, Asif has discovered that the business is far less valuable than he expected.Which of the following statements is most likely to be TRUE?

• A)Asif is not entitled to rescind the contract if, before entering into the contract, he carelessly failed to discover the error contained in Olga's innocent misrepresentation.
• B)Rescission is not available for an innocent misrepresentation.
• C)Asif is entitled to rescission even if, before entering into the contract, he investigated the true state of affairs that Olga addressed in her innocent misrepresentation.
• D)Asif is not entitled to rescission unless he can prove that Olga's innocent misrepresentation was the only, or at least the most important, reason for him entering into the contract.
• E)The only legal remedy available to Asif is rescission.

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Definitions:

Reaction Formation

A defense mechanism where an unacceptable impulse is transformed into its opposite, often in behavior and attitudes.

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism where unpleasant thoughts, feelings, or desires are unconsciously excluded from consciousness.

Identical Twin

Identical twin refers to two individuals who have developed from a single fertilized egg, sharing the same genetic material and typically, but not exclusively, similar physical traits and characteristics.