Contracts

Fraud in a real estate contract exists when a party makes:

AAn honest mistake about a property's age
BA knowing misrepresentation of a material fact intended to induce the other party to contract✓ Correct
CAn optimistic opinion about the market
DA negligent error in the property description

Explanation

Fraud requires: (1) a false representation of a material fact, (2) knowledge that it is false (scienter), (3) intent to induce the other party to act, (4) justifiable reliance, and (5) resulting damage.

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