Mimi brings her grandmother's engagement ring to an Frank, an expert appraiser of jewelry. Frank appraises the ring to be worth $$500$ when he knows it is actually worth $$2500.$ Mimi agrees to sell the ring to Frank for $$500,$ the appraised value. When, she discovers the true value of the ring, she attempts to void the contract. Which of the followings statements is true?

Question $5$Answer

a$.$

She cannot void the contract based on fraud in the inducement. Frank's statement of the value of the ring was a mere opinion, not a fact.

b$.$

She can most likely void the contract based on fraud in the inducement. Although statements as to value are typically viewed as statements of opinion, not fact, in this case because of the superior knowledge of the buyer, the expert's opinion is treated as a fact.

c$.$

She can likely void the contract based on undue influence.

d$.$

She cannot void the contract because statements of value can never be the grounds for rescission.