Misrepresentation Flashcards
(14 cards)
Which of the following is an essential element of an actionable misrepresentation?
A. A false statement of fact made to the representee
B. A deliberate intention to deceive
C. A promise of future performance
D. Silence about a material fact
A. A false statement of fact made to the representee.
Explanation: An actionable misrepresentation requires (1) a false statement of fact (not opinion or silence), (2) addressed to the claimant, and (3) inducing them into the contract
Which of these is not a required element for misrepresentation?
A. Material inducement of the contract
B. Fraudulent intent by the representor
C. A false statement of fact
D. Communication of the statement before contracting
B. Fraudulent intent by the representor.
Explanation: Fraudulent intent is required only for fraudulent misrepresentation; negligent and innocent misreps lack scienter
How many categories of misrepresentation are recognised under the Misrepresentation Act 1967?
A. Two: fraudulent and innocent
B. Four: fraudulent, negligent, innocent, estoppel
C. Three: fraudulent, negligent, and innocent
D. One: any false statement
C. Three: fraudulent, negligent, and innocent.
Explanation: MA 1967 recognises fraudulent (tort), negligent (s 2(1)), and innocent (no damages, but rescission) misrepresentations
Which is a statement of fact for misrepresentation purposes?
A. “I believe this car will appreciate in value.”
B. “In my opinion, this painting is the finest in our collection.”
C. “I intend to invest in more shares next year.”
D. “This property has no history of subsidence.”
D. “This property has no history of subsidence.”
Explanation: Statements of fact include present facts or conduct; opinions or intentions qualify only if a representor lacks grounds
Seller says, “This is the best phone on the market.” Buyer relies and purchases. Is this an actionable misrepresentation?
A. No—it’s mere puffery, not a factual statement
B. Yes—because it induced the purchase
C. No—opinions never qualify
D. Yes—if the seller knew it was false
A. No—it’s mere puffery, not a factual statement.
Explanation: Statements of opinion (“best”) are generally non-actionable unless the representor implies undisclosed facts to justify it .
Vendor is silent about a known structural defect. Buyer later sues for misrepresentation. Will silence succeed?
A. Yes—silence is treated as a statement of fact
B. No—silence does not constitute misrepresentation
C. Yes—if equitable estoppel applies
D. No—unless statute imposes disclosure duty
B. No—silence does not constitute misrepresentation.
Explanation: There is no general duty to disclose; silence is not a statement of fact unless equity or statute imposes duty .
Company X falsely states its turnover in negotiations. Buyer learns truth but proceeds anyway. Can Buyer rescind?
A. Yes—since the statement was false and induced contract
B. No—because Buyer affirmed by proceeding after learning the truth
C. No—affirmation is not a bar to rescission
D. Yes—affirmation only affects damages
B. No—because Buyer affirmed by proceeding after learning the truth.
Explanation: Affirmation (continuing to perform after discovering the misrep) bars rescission
Director says, “We intend to launch product Y next quarter,” but has no plan. What category of misrepresentation is this?
A. Innocent
B. Negligent
C. Fraudulent
D. Non-actionable opinion
C. Fraudulent.
Explanation: A false statement of present intention is a statement of fact about the representor’s state of mind and, if knowingly untrue, is fraudulent misrepresentation
What measure of damages applies for a negligent misrepresentation under MA 1967?
A. Expectation damages
B. Tort measure (restoring position as if misrep hadn’t occurred)
C. Reliance damages only
D. No damages for negligent misrep
A. Expectation damages.
Explanation: Under MA 1967 s 2(1), negligent misrep damages are assessed as if fraudulent (tort measure), aiming to restore to position as if true statement had been made
Which is a bar to rescission of a misrepresentation?
A. Delay (lapse of time)
B. Undue influence
C. Illegality of contract
D. Lack of consideration
A. Delay (lapse of time).
Explanation: Rescission is barred by affirmation, lapse, third-party rights, or impossibility; undue influence and illegality are separate vitiating factors
Aside from misrepresentation claims, which tort can a party pursue for false statements?
A. Negligent misstatement
B. Passing off
C. Economic duress
D. Breach of trust
A. Negligent misstatement.
Explanation: A party may sue in tort for negligent misstatement where a duty of care in making statements exists, independent of contract
Under MA 1967 s 2(2), what remedy may a court award for an innocent misrepresentation?
A. Rescission only
B. Damages only
C. Rescission and punitive damages
D. Damages in lieu of rescission
D. Damages in lieu of rescission.
Explanation: s 2(2) allows the court to award damages instead of rescission for innocent misrepresentation if equitable to do so
Which of the following best describes misrepresentation by conduct?
A. A written statement that turns out to be false
B. A promise about a future intention that is untrue
C. A false representation made through actions or gestures rather than words
D. Silence about a material fact
C. A false representation made through actions or gestures rather than words.
Explanation: Misrepresentation can arise from conduct as well as words or writing—behaviours that convey a false impression of fact (e.g., showing an empty barn as full).
Silence may amount to a misrepresentation when there is a duty to disclose. In which scenario is such a duty most likely to arise?
A. Arms-length commercial negotiations between sophisticated parties
B. Sale of a used car by a private seller
C. Advertisement of goods in a newspaper
D. During a fiduciary relationship where one party must act in the other’s best interests
D. During a fiduciary relationship where one party must act in the other’s best interests.
Explanation: While there’s no general duty to disclose, equity or statute can impose one—most commonly in fiduciary relationships, where silence about a material fact breaches the duty of full disclosure.
