Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................3
Question 3..................................................................................................................................5
Question 4..................................................................................................................................7

2BUSINESS LAW
Question 1
Issue
The issue in this question is to ascertain whether Alicia would have a contractual
obligation to sell for business to Rasheed.
Rule
Misrepresentation means giving false information to a person buy another before the
contract comes into existence yet it is believed that misrepresentation induces the person to
enter into the contract under false impression and suffer from loss or damage. Thus, the
aggrieved party is given the chance to either rescind the contract or ask for compensation.
Misrepresentation generally refers to statement which is false based on facts and not on
opinion1. A promisee is expected to inspect thoroughly when investing in an agreement,
however a promise or has the immunity to make big claims about his offer when dealing in a
closed circuit in order to earlier the promisee or other potential buyers. It is upon the
promisee to make good judgment of the deal and invest accordingly. When the promise or
makes a promise or a statement believing or thinking it to be true to the best of knowledge
and does not intend to deceive the promisee, in such case it would not amount to
misrepresentation. While, in fraudulent misrepresentation, the promisor makes an incorrect
statement knowing that it is incorrect and with an intention to keep the promisee in a
falsehood and false impression, so that the promisee agrees to enter into the agreement. The
remedy for the promisee in such cases is either to rescind the agreement or claim damages for
the injury or loss sustained.
Application
1 Lens, Jill Wieber. "Honest Confusion: The Purpose of Compensatory Damages in Tort and Fraudulent
Misrepresentation." (2010) U. Kan. L. Rev.59, 231.