Upon discovering the misrepresentation, Charles seeks to recover the boat. What are Charles’s rights against Virginia and Donald?

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Upon discovering the misrepresentation, Charles seeks to recover the boat. What are Charles’s rights against Virginia and Donald?

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Virginia induced Charles to sell his boat to her by misrepresentation of material fact upon which Charles reasonably relied. Virginia promptly sold the boat to Donald, who paid fair value for it and knew nothing concerning the transaction between Virginia and Charles. Upon discovering the misrepresentation, Charles seeks to recover the boat. What are Charles’s rights against Virginia and Donald?

Explanation & AnswerSolution by a verified expert

Explanation

The misrepresentation of facts is going tobe considered fraud if the injured party has no other option to prevent it. However, Individual C had an opportunity to inspect the authenticity of the statements made by Individual V, which Individual C missed.So,Individual C can claim compensatory damages but not the initial price of the boat.
 
Individual D is the third party included in the sale of the boat. Individual D is not related to the previous contract of Individual V and Individual C. So,Individual D not personally liable for anything.

Verified Answer

Individual C is not going to recover the complete selling price of the boat from Individual V. However, Individual C can claim some damage because at the time of contract, there was the presence of a justifiable reliance on the statements made by Individual V.
 
Individual C cannot sue Individual D for the damages. It is because Individual D was not involved the contract between Individual C and Individual V.

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