× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
A
6
j
6
c
5
m
5
C
5
d
5
s
5
n
4
i
4
d
4
d
4
J
4
New Topic  
abunting abunting
wrote...
Posts: 600
Rep: 0 0
6 years ago
Fraudulent Misrepresentation. Nosrat, a citizen of Iran, owned a hardware store with his brother-in-law, Edwin. Edwin induced Nosrat to sign a promissory note for 11,400, payable to a third party, telling Nosrat that the document was a credit application for the hardware store. Although Nosrat could read and write English, he failed to read the note or to notice that the document was clearly entitled PROMISSORY NOTE (SECURED) and Security Agreement. The money received from the third party in exchange for the note was spent by Edwin and others. When the third party sued for payment, Nosrat sought to void the note on the basis of Edwin's fraudulent inducement. Will Nosrat succeed in his attempt? Discuss.
Read 58 times
1 Reply

Related Topics

Replies
wrote...
6 years ago
Fraudulent misrepresentation
No. The court held that Nosrat was liable on the note because with ordinary diligence he could have prevented the fraud from occurring. An examination of the document by Nosrat would have quickly revealed the true nature of the contract he was signing, and the fact that he was confident that Edwin was telling him the truth cannot excuse him from his negligence in signing a document did not read. Because there was no deceit on the part of the third party, and because Nosrat's reliance is based on the deceit of his brother-in-law, Nosrat cannot escape liability by claiming fraud.
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  751 People Browsing
Related Images
  
 253
  
 143
  
 689
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 380