Vidyalelo
Commerce · Q732

Insurance

Graduate and Post Graduate · Commerce · question 732

Q732

Which of the following could be termed Misrepresentation?

A.
Innocent misrepresentation
B.
Fraudulent misrepresentation
C.
A & B are correct
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Both Innocent misrepresentation and fraudulent misrepresentation could be termed Misrepresentation. Innocent misrepresentation is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract.