Question

Edgar promises Alice that a certain used car will give her a "smooth ride." Edgar offers to let Alice take the car for a test drive, but Alice declines. She pays for the car and drives off but soon realizes that the car's suspension system is in poor condition. Alice may rescind the contract on the ground of ____.

1) unilateral mistake
2) fraud
3) misrepresentation
4) not being defrauded

Answer 1

Alice can rescind the contract on grounds of misrepresentation due to Edgar's promise of a "smooth ride," which turned out to be false as the car had a poor suspension system.

Step-by-step explanation:

Alice may rescind the contract on the ground of misrepresentation. When Edgar promised a "smooth ride" without revealing the poor condition of the car's suspension system, he provided Alice with misleading information about the car's quality. Since Alice relied on Edgar's statement and declined a test drive, it's likely seen as innocent misrepresentation because Edgar may not have intended to deceive, and Alice did not verify the claim independently. However, if it's found that Edgar knew about the suspension issues and intentionally misled Alice, it could potentially be classified as fraud.