In General,what Happens If a Buyer Relies on Misrepresentations

question 52

Multiple Choice

In general,what happens if a buyer relies on misrepresentations?

• A)They do not become part of the contract because the buyer is supposed to do due diligence.
• B)They do not become part of the contract unless they were in writing.
• C)They become part of the contract as express warranties.
• D)They do not become part of the contract unless the buyer can prove an intentional lie.
• E)They become part of the contract as implied warranties.

---

Definitions:

Partnership Losses

Denotes the deficits shared by partners in a business partnership, reflecting negatively on the partnership's fiscal health and possibly impacting individual partners' finances based on their share.

Secret Profit

A financial benefit that an individual or entity gains without disclosing it to the relevant parties, typically in situations where there is a duty to disclose such benefits.

Business Transaction

An economic event with a monetary impact on an entity's financial statements, often involving the exchange of goods or services.

Actual Authority

The express and implied powers granted by a principal to an agent to act on their behalf.