Which of the Following Statements Is True of Justifiable Reliance

question 4

Multiple Choice

Which of the following statements is true of justifiable reliance?

• A) Misrepresentation of public facts amounts to justifiable reliance.
• B) It cannot lead to rescission of a contract if the complaining party was aware of the truth.
• C) There should not be any causal connection between a misrepresentation and the complaining party's entry into the contract.
• D) It is an important element of unilateral mistakes.

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Definitions:

Sales Tax

A percentage of the selling price of goods and services, collected by sellers and remitted to the appropriate tax authority.

Liability Account

An accounting record that captures the amounts a company owes to others.

Gross Sales

represent the total sales revenue before any deductions are made for returns, allowances, or discounts.

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.