3
QuizMultiple Choice

Torts: Strict Liability and Nuisance — Test

Question 3 • Business Law

Your client is a corporation, Pros, who is working with another corporation, Cons, to build an office building downtown. Pros believes that Cons had Pros sign a separate agreement that was not the one they bargained for. Although it had the same heading, the one Pros signed was longer and had smaller print. Which legal issue is raised above?

Answer
A
fraud in the inducement
B
fraud in the execution
C
fraud in the intent
D
fraud and culpability

Explanation

Fraud in the execution occurs when someone is deceived about the nature or contents of the document they are signing. Pros believes it signed a different agreement from the one it bargained for, even though the heading was the same. That raises fraud in the execution, not fraud in the inducement, which generally involves being misled into agreeing to a contract whose nature is understood.

AI-written and checked against the verified answer.

Previous
Next