Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she resold some products that she received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of fraud. What is the remedy available to her?

Question

Darren Roman

Business

9 September, 02:46

Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she resold some products that she received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of fraud. What is the remedy available to her?

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Ryder Shaw · Answer 1

Quasi Contract

Explanation:

A quasi contract is a two-party retroactive agreement that has no prior commitments to each other. A judge creates it to correct a situation where one party at the expense of the other obtains something.

The agreement is intended to prevent one party from taking undue advantage of the situation at the expense of the other party.