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ADAMS v. ADAMS

No. S-10271.

89 P.3d 743 (2004)

Michael A. ADAMS, Appellant, v. Don ADAMS, individually and on behalf of Alaska Rubber & Supply, Inc., and ADA Investments, Appellees.

Supreme Court of Alaska.

April 23, 2004.

Attorney(s) appearing for the Case

Larry L. Caudle, Anchorage, for Appellant.

Wevley William Shea, Anchorage, for Appellees.

Before: FABE, Chief Justice, MATTHEWS, EASTAUGH, BRYNER, and CARPENETI, Justices.

OPINION

MATTHEWS, Justice.

The power to avoid a contract due to misrepresentation can be lost if a party knowing or having reason to know of the misrepresentation affirms the contract. But this rule only applies in cases of non-fraudulent misrepresentations. Where there is fraud the power of avoidance is only lost if the party actually knows of the misrepresentation and affirms the contract. The main question in this case is whether, in the process...

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