Question

A company enters into a contract with an individual to provide consulting services. However, the individual later discovers that the company misrepresented its financial status. What legal remedy is available to the individual?

• A. Specific performance
• B. Rescission
• C. Quantum meruit
• D. Injunction

Hint:

When dealing with contract law, remember that misrepresentation can lead to rescission, which allows the contract to be voided due to false information provided at the time of agreement.

Answer 1

The Correct Option is B

In this case, the correct legal remedy available is rescission. Since the company misrepresented its financial status, the individual can seek to rescind the contract, which means to cancel the contract and restore the parties to their original positions before the contract was made.