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Can you explain the answer of this question below:
A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?
- A:A can cancel the contract alleging fraud.
- B:A cannot cancel the contract.
- C:A can cancel the contract alleging undue influence.
- D:A can claim damages.
- E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract. c. A can cancel the contract alleging undue influence. d. A can claim damages.
The answer is b.
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Can you explain the answer of this question below:A contracts with B t...
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Can you explain the answer of this question below:A contracts with B t...
B because the principle of Caveat Emptor ie. 'let the buyer beware' applies.The seller is under no obligation to bring the defects of the good to the notice of the buyer unless buyer shows intention to rely on seller's opinion provided he has expressly intimated this to the seller.Since,in this case there is no such expression from buyer,the buyer cannot hold the seller liable nor can he rescind the contract.
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Can you explain the answer of this question below:A contracts with B t...
Answer:
Explanation:
In this scenario, A entered into a contract with B to buy a necklace, believing it to be made of pearls. However, it is later discovered that the necklace is actually made of imitation pearls with no value. B, the seller, knew that A was mistaken about the material of the necklace but did not inform A about the true nature of the pearls.
Fraud:
To cancel a contract on the grounds of fraud, certain elements must be met:
1. False Representation: The seller must have made a false representation or statement regarding the necklace being made of real pearls.
2. Knowledge: The seller must have known that the representation was false. In this case, B knew that the necklace was made of imitation pearls.
3. Intent to Deceive: The false representation must have been made with the intent to deceive A.
4. Reliance: A must have reasonably relied on the false representation in entering into the contract.
5. Damages: A must have suffered some sort of harm or damages as a result of the fraud.
In this scenario, although A believed that the necklace was made of real pearls, the element of fraud is not present. This is because B did not make any false representation or statement to A about the necklace being made of real pearls. B simply remained silent and did not correct A's mistaken belief.
Undue Influence:
Undue influence occurs when one party exerts excessive pressure or influence on the other party, causing them to enter into a contract against their will. However, in this scenario, there is no indication that undue influence was exerted by B on A. A simply made a mistake about the material of the necklace, which B did not correct.
Cancellation of Contract:
Since the element of fraud is not present and there is no indication of undue influence, A cannot cancel the contract on these grounds. A is bound by the terms of the contract and is obligated to fulfill their obligations under it.
Claiming Damages:
Since A cannot cancel the contract on the basis of fraud, they also cannot claim damages for fraud. A is still responsible for fulfilling their obligations under the contract and cannot seek compensation for any alleged harm or damages resulting from the mistaken belief about the material of the necklace.
Explanation:
In this scenario, A entered into a contract with B to buy a necklace, believing it to be made of pearls. However, it is later discovered that the necklace is actually made of imitation pearls with no value. B, the seller, knew that A was mistaken about the material of the necklace but did not inform A about the true nature of the pearls.
Fraud:
To cancel a contract on the grounds of fraud, certain elements must be met:
1. False Representation: The seller must have made a false representation or statement regarding the necklace being made of real pearls.
2. Knowledge: The seller must have known that the representation was false. In this case, B knew that the necklace was made of imitation pearls.
3. Intent to Deceive: The false representation must have been made with the intent to deceive A.
4. Reliance: A must have reasonably relied on the false representation in entering into the contract.
5. Damages: A must have suffered some sort of harm or damages as a result of the fraud.
In this scenario, although A believed that the necklace was made of real pearls, the element of fraud is not present. This is because B did not make any false representation or statement to A about the necklace being made of real pearls. B simply remained silent and did not correct A's mistaken belief.
Undue Influence:
Undue influence occurs when one party exerts excessive pressure or influence on the other party, causing them to enter into a contract against their will. However, in this scenario, there is no indication that undue influence was exerted by B on A. A simply made a mistake about the material of the necklace, which B did not correct.
Cancellation of Contract:
Since the element of fraud is not present and there is no indication of undue influence, A cannot cancel the contract on these grounds. A is bound by the terms of the contract and is obligated to fulfill their obligations under it.
Claiming Damages:
Since A cannot cancel the contract on the basis of fraud, they also cannot claim damages for fraud. A is still responsible for fulfilling their obligations under the contract and cannot seek compensation for any alleged harm or damages resulting from the mistaken belief about the material of the necklace.
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Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b.
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Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b..
Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b..
Solutions for Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. in English & in Hindi are available as part of our courses for CA Foundation.
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Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b., a detailed solution for Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. has been provided alongside types of Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. theory, EduRev gives you an
ample number of questions to practice Can you explain the answer of this question below:A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct?A:A can cancel the contract alleging fraud.B:A cannot cancel the contract.C:A can cancel the contract alleging undue influence.D:A can claim damages.E:B knows that A is mistaken and takes no steps to correct the error. Now A wants to cancel the contract on the basis of fraud. Which of the following statement is correct? a. A can cancel the contract alleging fraud. b. A cannot cancel the contract.c. A can cancel the contract alleging undue influence. d. A can claim damages.The answer is b. tests, examples and also practice CA Foundation tests.
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