Identify the Difference Between a Case Involving Intentional Fraud and Innocent

question 2

Multiple Choice

Identify the difference between a case involving intentional fraud and innocent misrepresentation.

• A) The contractual remedy of rescission is not available in a misrepresentation case.
• B) A person committing innocent misrepresentation is liable for punitive damages for the tort of deceit.
• C) Reasonable reliance of the complaining party is not required in a fraudulent case.
• D) Materiality is not required in a fraudulent case.

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Definitions:

Waste

Permanent and substantial injury to a landlord's property.

Legal Liability

The responsibility of an individual or entity for actions or omissions that result in harm or loss to another party, subject to legal sanctions.

Assignment

(1) A contracting party’s (an assignor’s) transfer of his or her rights to the contract to a third party (an assignee). (2) A transfer of a tenant’s entire interest in a leased property.

Covenant of Quiet Enjoyment

A lease promise that the tenant will have peaceful and undisturbed use of the property, without interference from the landlord or others with superior title.