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      Question

      The positive assertion of a falsehood, regardless of

      belief in its truth; a breach of duty that unfairly benefits the breaching party without intent to deceive; or causing an innocent party to mistakenly believe in the substance of an agreement.
      A Fraud Correct Answer Incorrect Answer
      B Duress Correct Answer Incorrect Answer
      C Coercion Correct Answer Incorrect Answer
      D Undue Influence Correct Answer Incorrect Answer
      E Misrepresentation Correct Answer Incorrect Answer

      Solution

      Contract Act Section 18. “Misrepresentation” defined. “Misrepresentation” means and includes—(1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; (2) any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him; by misleading another to his prejudice, or to the prejudice of any one claiming under him; (3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.

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