Assess the truthfulness of the following two statements: 1. A guardian may sell the piece of land owned by its ward for more than 50% of its fair market value if the former has obt... Assess the truthfulness of the following two statements: 1. A guardian may sell the piece of land owned by its ward for more than 50% of its fair market value if the former has obtained a court approval. 2. Incidental fraud only obliges the erring party to pay damages to the injured party.
Understand the Problem
The question presents two statements related to legal principles: one concerning a guardian's sale of a ward's land and the other regarding incidental fraud. It seems to be a true/false question, testing understanding of property law and contract law.
Answer
Statement 1 is false, while statement 2 is true.
Here's an assessment of the two statements:
- Statement 1 is false. A guardian generally cannot sell a ward's property for more than its fair market value. Their duty is to act in the ward's best interest, and selling above market value would be unusual and potentially raise legal concerns, even with court approval. Court approval is required for the sale, but it doesn't automatically authorize selling at an inflated price. The aim is to get fair market value.
- Statement 2 is true. Incidental fraud (also known as dolo incidente) indeed only obliges the erring party to pay damages. This type of fraud isn't the primary reason someone enters into a contract, but it does cause harm that needs to be compensated.
Answer for screen readers
Here's an assessment of the two statements:
- Statement 1 is false. A guardian generally cannot sell a ward's property for more than its fair market value. Their duty is to act in the ward's best interest, and selling above market value would be unusual and potentially raise legal concerns, even with court approval. Court approval is required for the sale, but it doesn't automatically authorize selling at an inflated price. The aim is to get fair market value.
- Statement 2 is true. Incidental fraud (also known as dolo incidente) indeed only obliges the erring party to pay damages. This type of fraud isn't the primary reason someone enters into a contract, but it does cause harm that needs to be compensated.
More Information
Guardians have a fiduciary duty to their wards, meaning they must act in the ward's best interests. Incidental fraud differs from causal fraud, which would allow the injured party to void the contract.
Tips
A common mistake is confusing incidental fraud and causal fraud. Remember the former only results in damages, while the latter can void the contract.
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