Deck 15: Misrepresentation

Question 1

Incorrect statements of law cannot ground a claim in misrepresentation.

Answer 1

False

Question 2

Lee inherits an apple orchard from his distant aunt and decides to put it up for sale as he is not interested in running the orchard. He tells Joan that a yearly harvest of a tonne of apples is possible if the orchard is properly maintained. After purchasing the orchard, Joan learns that the yield of fruit is much lower than what she was told. She sues Lee for misrepresentation. What is the likely outcome?

A) Her claim will fail since Lee only made a false statement of fact and not a false statement of law.
B) Her claim will succeed since Lee made a false statement of fact.
C) Her claim will fail since Lee only made a false statement of opinion.
D) None of the options provided are correct.

Answer 2

B

Question 3

Rachel buys a puppy solely on account of its cuteness. It later emerges that the puppy is not a pedigree puppy. The seller advertised it as a pedigree puppy, but Rachel had not seen the advert. Rachel wishes to sue the seller for misrepresentation. Will she succeed?

Answer 3

False

Question 4

Michael agrees to buy Joshua's company after Joshua tells him that it makes a gross profit of approximately £1 million per year. John provides documents which actually indicate that the company's profits have never surpassed £100,000, but Michael fails to read them carefully before signing the contract. Can Michael rescind the contract due to Joshua's misrepresentation?

Question 5

What happens after a representee decides to rescind a contract?

A) The whole transaction will be set aside and both parties restored to their original positions.
B) If the misrepresentation was innocent, the representee is free from his future obligations under the contract but must fulfil pre-existing ones.
C) The representee can set aside parts of the transaction which he agreed to as a result of the misrepresentation and also affirm other obligations under the contract.
D) None of the options provided are correct.

Question 6

A completely executed contract cannot be rescinded.

Question 7

Which of the following are bars to rescission? Please select all that apply.

A) It is impossible to restore the parties to their original positions.
B) The representee has affirmed the contract.
C) A bona fide purchaser for value without notice has already acquired the goods in question.
D) None of the above

Question 8

Damages are only available at common law for the tort of deceit and negligent misrepresentations.