The correct answer is C. A & B are correct.
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 innocent or fraudulent.
Innocent misrepresentation is a false statement made without any intention to deceive. It is made carelessly or without due care, and the maker of the statement does not believe that it is false.
Fraudulent misrepresentation is a false statement made with the intention of deceiving the other party. The maker of the statement knows that it is false, or believes that it is false, and intends to induce the other party into a contract on the basis of the false statement.
Both innocent and fraudulent misrepresentation can give rise to a claim for damages. In addition, fraudulent misrepresentation can also give rise to an action for rescission, which is a remedy that allows the innocent party to cancel the contract.
Here is a brief explanation of each option:
- Option A: Innocent misrepresentation. This 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. Innocent misrepresentation is made carelessly or without due care, and the maker of the statement does not believe that it is false.
- Option B: Fraudulent misrepresentation. This is a false statement of fact made with the intention of deceiving the other party. The maker of the statement knows that it is false, or believes that it is false, and intends to induce the other party into a contract on the basis of the false statement.
- Option C: A & B are correct. This is the correct answer, as both innocent and fraudulent misrepresentation can be termed misrepresentation.
- Option D: None of the above. This is the incorrect answer, as both innocent and fraudulent misrepresentation can be termed misrepresentation.