Question

____________ occurs when one party makes false statements or commits some sort of false action that causes another party to rely on those falsehoods and then experience an injury or loss as a result.

a) Misrepresentation
b) Fraud
c) Duress
d) Mistake

Answer 1

The correct answer is Fraud, which involves intentional deception causing another party to rely on false information and suffer a loss. This differs from misrepresentation, duress, and mistake, which have distinct legal nuances.

Step-by-step explanation:

The scenario described occurs when one party makes false statements or engages in a false action leading another party to rely on those falsehoods and suffer an injury or loss as a result.

The correct answer is b) Fraud. Fraud is a deliberate deception to secure unfair or unlawful gain. In a legal context, fraud requires an intentional misrepresentation of material fact, knowledge on the part

The intent to induce the victim to act, the victim's reliance on the information, and resulting damage.

This is different from a misrepresentation, which may not always be intentional, and duress, someone is forced to act against their will. A mistake is an incorrect belief at the time of contracting that certain facts are true or certain events will happen.