Chapter 17 Self-test questions

Misrepresentation

Quiz Content

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. For an aggrieved party seeking a remedy for misrepresentation, which of the following might be important to determine before the claim is taken to court? Select all that apply

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. Which of the following types of statement clearly cannot give rise to a claim for misrepresentation? Select all that apply.

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. In which of the following cases is silence likely to be found equivalent to, or to amount to, a misrepresentation? Select all that apply.

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. When will the right to rescind a contract for misrepresentation be lost?

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. In which of the following cases are the courts likely to find an exercisable (or exercised) right to rescission of the contract? Select all that apply.

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. What has been held by the courts to be the appropriate measure of damages in a case brought under section 2(1) of the Misrepresentation Act 1967?

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. TRUE/FALSE A claimant who has lost the right to rescind a contract for misrepresentation may be entitled to recover damages under section 2(2) of the Misrepresentation Act 1967.

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. In which of the following circumstances would a claimant find it preferable to bring a claim for misrepresentation at common law rather than under section 2(1) of the Misrepresentation Act 1967? Select all that apply.

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. Harbour Heights (estate agents) advertise for sale a large warehouse on the harbour. Mario hopes to buy the warehouse and make extensive changes so as to convert it into his own studio cum architectural exhibition centre. In an attempt to clinch the deal, an HH representative dishonestly tells him that there are no planning restrictions preventing a change of use or design of the warehouse. Mario buys the warehouse on the faith of this representation, and soon discovers that all changes to the present interior architectural features are forbidden. Mario wishes to bring a claim for misrepresentation but finds the following statement under clause 8 of the concluded contract: "No servant or agent of HH & Co has the authority to make any representation or warranty on behalf of HH & Co". Advise Mario as to the effect of HH's attempt to exclude liability for misrepresentation.

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