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Which statement correctly distinguishes fraud from misrepresentation?
AIn misrepresentation the maker intends to deceive
BMisrepresentation always makes the contract void
CIn fraud the injured party may claim damages, but in misrepresentation he may only rescind or seek restitution
DFraud lets the wrongdoer plead the victim could have found the truth
Answer & Solution
Correct answer: C. In fraud the injured party may claim damages, but in misrepresentation he may only rescind or seek restitution
In fraud there is intent to deceive and the injured party can rescind and claim damages; in misrepresentation the maker believes the statement true, and the injured party can rescind or seek restitution but not damages.
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