Contracts — Misrepresentation

The Rebuilt Van

A seller, Quinn, told a buyer, Lee, that a used van "has never been in an accident." Quinn did not actually know its history but said it confidently to close the sale. After buying, Lee discovered the van had been rebuilt after a serious crash and was worth far less.

Law. A contract is voidable for misrepresentation where there is (1) a false assertion of fact, (2) that is material or fraudulent, (3) on which the other party justifiably relied. A statement made with reckless disregard for its truth is fraudulent.

In two or three short paragraphs, advise whether Lee can rescind, applying each element and addressing whether Quinn's statement was fraudulent.

multi-paragraph · ≤ 250 words

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