The correct answer is: B. Merely misrepresentation
A misrepresentation is a false statement of fact made by one party to another, which has the effect of inducing that party into a contract with the maker of the statement. Misrepresentation can be either fraudulent or innocent. Fraudulent misrepresentation is made with the intention of deceiving the other party, while innocent misrepresentation is made without such intention.
Inaccurate statements in a proposal without any fraudulent intention are merely misrepresentations. This is because the maker of the statement does not intend to deceive the other party, and the statement is not made with the knowledge that it is false. However, even if a misrepresentation is not fraudulent, it can still give rise to a claim for damages if it causes the other party to enter into the contract.
The other options are incorrect for the following reasons:
- A. Representation is a broader term than misrepresentation, and can include both true and false statements.
- C. Contributing statement is a term used in contract law to describe a statement that is made by one party to another, and which is relied on by the other party in entering into the contract. However, a contributing statement does not need to be false in order to give rise to a claim for damages.
- D. Offer by the party is a statement of intention to enter into a contract. An offer must be clear and unambiguous, and must be communicated to the other party. If an offer is accepted, it will create a binding contract. However, an offer that is inaccurate or misleading may not be considered a valid offer.