A listing agent tells prospective buyers that the home sits on 'the finest street in the whole county' and is 'a once-in-a-lifetime opportunity.' These statements are best characterized as:
Correct Answer
C) Puffing
Puffing is exaggerated praise or opinion that a reasonable buyer would not treat as a statement of fact, and it creates no liability because nothing verifiable is asserted. Whether a street is the finest in the county cannot be proved true or false, so the statement is opinion. The line is crossed when a statement contains a specific verifiable fact that is false, which is misrepresentation, or when such a false fact is stated knowingly to induce reliance, which is fraud.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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