Which of the following contract defenses can result in rescission or money damages?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

Intentional misrepresentation is a recognized contract defense that can lead to rescission of the contract or the awarding of money damages to the injured party. This occurs when one party knowingly makes a false statement of fact with the intent to deceive another party, who relies on that false information to their detriment. The injured party can seek to rescind the contract, effectively undoing it, and may also be entitled to recover damages that arose from relying on the misrepresentation.

When a party can demonstrate that they were intentionally misled, the law provides remedies to address the unfairness of being taken advantage of. This emphasizes the importance of honesty and transparency in contractual dealings, as reliance on false information undermines the fundamental principle of contract law that parties enter agreements based on valid and truthful representations.

Other defenses like mutual mistake, duress, and undue influence can also affect the enforceability of contracts, but the specific outcome, such as rescission or damages, can vary based on the unique circumstances of each case and the applicable jurisdiction.

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