Suppose you offer your car for sale. Your car was submerged up to the windows in a flood three years ago, but the car currently seems to be operating fine for you.
A potential buyer asks you, “Has your car ever been in an accident?” If you say “no,” have you committed a misrepresentation? What must happen for a fraudulent representation to occur?
Suppose the person instead asks you “Has your car ever been damaged?” What other types of misrepresentation are there?
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If a potential buyer does not ask you any questions regarding the condition of your car, must you voluntarily disclose that your car has been in a flood? Should you? Could a misrepresentation occur by remaining silent?
Would this person be able to rescind a contract due to a misrepresentation or mistake?
Be sure to draft your answers in paragraph form discussing each question thoroughly. You will also need to reply substantively to a classmates’ posting. Remember that the questions may be asking you for your opinion and not necessarily a specific answer from the text. Use your new knowledge to work it out!
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