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Question
Choose the best option for the following statement:
The distinction between fraud and misrepresentation:
1. Fraud is more or less intentional wrong, whereas misrepresentation may be quite innocent.
2. In addition to rendering the contract voidable, iS a cause of action in tort for damages. Simple misrepresentation is not a tort but a person who rightfully rescinds a contract is entitled to compensation for any damages which he has sustained through the non-fulfillment of the contract.
3. A person complaining of misrepresentation can be met with the defence that he had "the means of discovering the truth with ordinary diligence. But excepting fraud by silence in other cases of fraud it is no defence that "the plaintiff had the means of discovering the truth by ordinary diligence".
4. None of the above.
Options
1 is correct
1 and 2 is correct
1,2 and 3 is correct
Only 4 is correct
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Solution
1,2 and 3 is correct
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