Reference no: EM131044207

Seller who is trying to sell his car to Buyer knows that Buyer idolizes ex-basketballer Michael Jordan and tells Buyer that Michael Jordan once owned the car. This was not true! Assume that Buyer purchased the car, later learned about the lie told to him by Seller and then sued to rescind the contract. Because Seller knew that his representation would be likely to cause Buyer to purchase the car and the representation concerned a fact - Jordan previously owned the car - a court would likely rule that Seller's conduct amounted to intentional fraud.

• True
• False

A and B entered into a contract which B's secretary prepared. Both parties signed the agreement. They later realized that the secretary made a few clerical errors when preparing the written draft. A court would apply the remedy of Reformation thereby modifying the written contract so that it would accurately reflect the agreement as it was originally intended between A and B.

• True
• False