law for business 18 ed Jun 24 at 101pm iz Instructions will

ed: Jun 24 at 1:01pm iz Instructions will have 30 minutes to complete this quiz Questions must be answered in strict order, in other words, you d back to review or change previous answers. You will have two attempts to complete this quiz; questions will ch each attempt. Only the highest score will count towards your final grade. ease use the following ungraded, optional true/false drills as warm-up exercises for the quiz hapters 8.9 and 10 True/False Drills Question 1 1 pts Which of the following statements is true of fraud in the inducement? It refers to a defrauded party not signing a contract if the nature of writing cannot be understood. It occurs when a party intends to make a contract based on a false statement of terms It refers to a party forced to sign a contract under duress. It takes place when a party unintentionally signs a contract after being misguided by another 4 5 8 9 0

Solution

Fraud in the inducement is a contract fraud in which one of the party cheats the other party in signing a contract to gain the advantage of their own.

Faud of inducement is considered to have happened when following two things happens:

1) One of the party is misled about the fact

2) Those facts were used in making the decision to sign the contract

A party intending to sign the contract based on the false statement of terms meet both the condition of fraud in the inducement and hence it is fraud in the inducement.

Thus the second option is correct.