Under general rules, which statement about representations is correct?

Under general rules, which statement about representations is correct?

• A. An untrue representation allows rescission only if the representation was material.
• B. A representation must always be material to void a contract.
• C. A false representation can never void a contract.
• D. A representation is never an inducement to enter into the contract.

Answer: (A)

Misrepresentation and rescission hinge on materiality. For a misrepresentation to give rise to rescission, the false statement must be material — it would have influenced the other party’s decision to enter the contract. If the misrepresented fact is immaterial, rescission isn’t typically available, even if the statement was false. So the correct principle is that an untrue representation allows rescission only if the representation was material. The other statements misstate how misrepresentations work: misrepresentations can void a contract when they are false and material (and, in cases of fraud, are treated as especially serious); a representation can indeed be an inducement to enter the contract; and saying a false representation can never void a contract ignores the role of materiality and inducement in such remedies.

Misrepresentation and rescission hinge on materiality. For a misrepresentation to give rise to rescission, the false statement must be material — it would have influenced the other party’s decision to enter the contract. If the misrepresented fact is immaterial, rescission isn’t typically available, even if the statement was false. So the correct principle is that an untrue representation allows rescission only if the representation was material.

The other statements misstate how misrepresentations work: misrepresentations can void a contract when they are false and material (and, in cases of fraud, are treated as especially serious); a representation can indeed be an inducement to enter the contract; and saying a false representation can never void a contract ignores the role of materiality and inducement in such remedies.