#1
When does fraudulent misrepresentation occur in contract law?
When both parties make false statements
When one party makes a false statement with the intent to deceive
When there is a mistake in the contract terms
When the contract is unclear
#2
Which of the following statements best defines contractual misrepresentation?
A truthful statement made during contract negotiations
A false statement made with the intention to deceive the other party
An opinion expressed by one party
A statement made without the knowledge of its falsity
#3
What is the legal remedy available for innocent misrepresentation?
Rescission and damages
Punitive damages
Specific performance
No legal remedy
#4
What is the primary purpose of the doctrine of caveat emptor in contractual relationships?
To encourage open communication between parties
To protect consumers from unfair contracts
To place the responsibility on the buyer to examine the goods before purchase
To discourage negotiations in contracts
#5
When can a party claim fraudulent misrepresentation based on silence or non-disclosure?
Always
Only if there is a duty to disclose
Never
Only if the misrepresentation is made orally
#6
What is the primary purpose of the remedy of rescission in cases of misrepresentation?
To punish the misrepresenting party
To compensate the innocent party for damages
To restore the parties to their pre-contractual positions
To force specific performance of the contract
#7
Which type of misrepresentation occurs when a party makes a false statement honestly believing it to be true?
Fraudulent misrepresentation
Negligent misrepresentation
Innocent misrepresentation
Duress
#8
In a case of fraudulent misrepresentation, what must the innocent party prove to claim damages?
Proof of the false statement
Proof of reliance and damages suffered
Proof of intention to deceive
Proof of mutual mistake
#9
What is the effect of negligent misrepresentation on a contract?
Rescission and damages
Specific performance
No legal remedy
Reformation of the contract
#10
In contract law, what is the difference between an innocent and a negligent misrepresentation?
Intent of the misrepresenting party
Materiality of the misrepresentation
Effect on the contract
Remedies available to the innocent party
#11
What is the statutory remedy available for misrepresentation under the Misrepresentation Act 1967 in the United Kingdom?
Specific performance
Damages and rescission
No statutory remedy
Reformation of the contract
#12
What is the key element that distinguishes fraudulent misrepresentation from innocent misrepresentation?
Materiality of the statement
Intent to deceive
Reliance on the statement
Presence of damages
#13
In contract law, what is the purpose of the remedy of specific performance?
To compensate for damages
To enforce the terms of the contract
To rescind the contract
To impose punitive measures