Debbie tells Barbara that a motorcycle she has for sale is in perfect condition and has been ridden less than 25,000 miles. In fact, Debbie rode the motorcycle for nearly 40,000 and caused the odometer reading to be rolled back to something under 25,000 miles before trying to sell the motorcycle to Barbara. Barbara, unaware that the motorcycle has been ridden more than 25,000 miles, agrees to pay Debbie $6,000 for the motorcycle. After she purchases the motorcycle and rides it home, Barbara discovers that the motorcycle has more than 40,000 miles on it, but also discovers that similar motorcycles with 40,000 miles typically sell for $9,000 a piece. As a result,
Barbara must return the motorcycle and demand the $6,000 returned because Barbara was defrauded |
Barbara must sell the motorcycle to a disinterested third party for $9,000, and is required to give the $3,000 profit to Debbie. |
Since there was fraud committed by Debbie, the contract is void and Debbie can demand Barbara return the motorcycle or pay an extra $3,000. |
Barbara may keep the motorcycle and Debbie cannot successfully argue she should have been paid more money for it. |
ANSWER WILL BE D) Barbara may keep the motorcycle and Debbie cannot successfully argue she should have been paid more money for it.
Since the agreement is fraud and it is voidable in the option of the Barbara, as because barbara has paid her the amount she has demanded and it is the option of Barbara to make agreement void, but since the case is in favour of barbera barbera will not have to return the motorcycle and since the demanded money has been paid and hence Debbie cannot demand more.
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