B is corrent because an innocent misrepresentation is a misstatement of fact made with an honest and justifiable belief (in good faith), without intent of defraud (i.e., scienter). Therefore, a plaintiff is not required to prove that the misrepresentation amounted to gross negligence to prevail in an action for innocent misrepresentation.
A is incorrect because the misrepresentation, although innocent, must have been a substantial factor in inducing the plaintiff to enter into the contract.
C is incorrect because in an action for innocent misrepresentation, any benefits received by the parties must be returned in order to restore each party to his/her precontractual position.
D is incorrect because the plaintiff must show that there was justifiable reliance upon a representation that was made with intent to be relied upon.
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