When Beth learns the truth, she has the right to cancel the agreement due to fraudulent misrepresentation. As a result, choice (B) is the appropriate approach.
In contract law, fraudulent misrepresentation is a civil tort. A contract is induced into being entered into by a false statement of fact.
Fraudulent misrepresentation is when a false statement is made intentionally, recklessly, or without the belief that it is true. A representation made carelessly and in violation of the obligation owed by Party A to Party B to take reasonable care to ensure the representation is correct is referred to as negligent misrepresentation.
Hence, option (B) is accurate.
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Your question is incomplete, probably the complete question is-
Alvin induces Beth to enter into a contract for the purchase of a Chef's Burger restaurant. Alvin knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of
A. mistake.
B. fraudulent misrepresentation.
C. none of the choices.
D undue influence.
