Question

3. Kahn of Portland Oregon, sent a letter to Lischner of Los Angeles inquiring whether Lischner’s property in Humboldt County was for sale. Lischner replied that he was interested in selling and asked Kahn about the fair market value. Kahn wrote that it was difficult to make an offer without a legal description of the property and asked for it and the annual taxes. These were provided by Lischner. Subsequently, Kahn wrote, “I hesitate to place a value on someone else’s property, but I can tell you that I have been offered a similar track of property for $2,000. Since your property is closer to mine, I would prefer to buy yours, and offer a four-year term contract at a total price of $2,500.” The two parties ultimately agreed on a cash price of $2,500. Shortly after contracting with Kahn, Lischner went to Humboldt county and readily learned, upon the most superficial inquiry that the property was worth more than $2,500. He sold the property to Dacoima Lumber Sales, Inc. for $7,500. Thereupon, Kahn sued Lischner for $5,000. Lischner responded that he had been induced to contract by a fraudulent misrepresentation as to the value of the property by Kahn and therefore could rescind their contract of sale.

What are the elements that must be present for fraudulent misrepresentation? Did Kahn commit fraud? Why, or why not.

4. Peterson Corporation wanted to run an ad campaign that featured popular songs sung by the original singer. The aim was to make an emotional connection with people who remembered the songs. When Bette was approached to sing for the commercial, she refused saying she did not “do” commercials. Peterson Corporation still wanted to use the song, so they hired a backup singer for Bette and she was told to “sound as much as possible like the Bette record.” The backup singer did the commercial, and people, even close acquaintances of Bette, thought it was her. Bette sued Peterson Corporation for wrongfully appropriating her likeness.

Please give a definition of misappropriation. Is this a valid example of misappropriation? Why or why not.

Answer 1

(3) Fraudulent misrepresentation is a civil offense of contract law. Misinterpretation of an untrue or misleading fact or statement with the intension to mislead and induces someone to enter into a contract during a negotiation by one party to another.In such incident the party that has been mislead for the facts may have the legal right to revoke the contract or seek compensation for any damages or loss occured.

In the incident given it can be said to be a case of Misrepresentation because either it may have been made fraudulently, carelessly or innocently from the part of Kahn of Portland Oregon where he has not informed Lischner of Los Angeles about the fair market price of his property as requested by him to do so. kahn has made an offer to Lischner at a much lower price than the actual value of the property giving a misleading or ignorant statement about the valuation where as Lischner has asked him to give an idea about the fair market price of that area. Thus it can be an inference that Lischner was induced by this representation to enter into the contract and so it is for the person alleging otherwise who is to be held for misrepresentation even though Lischner had the chance to verify the false statement.of the facts and thus the contract can be revoked .

Here Kahn shall not be entitled for any compensation as he has not incurred any losses as per the cases given rather he is liable for a misreprestation either intensionally or ignorantly made while entering a contract where his provided information was the basis of the agreement where the seller has relied upon the information given by is buyer about the fair price.