#1
When does fraudulent misrepresentation occur in contract law?
When one party makes a false statement with the intent to deceive
ExplanationFraudulent misrepresentation occurs when there's an intent to deceive with a false statement.
#2
Which of the following statements best defines contractual misrepresentation?
A false statement made with the intention to deceive the other party
ExplanationMisrepresentation involves intentionally deceiving the other party.
#3
What is the legal remedy available for innocent misrepresentation?
Rescission and damages
ExplanationInnocent misrepresentation can lead to rescinding the contract and claiming damages.
#4
What is the primary purpose of the doctrine of caveat emptor in contractual relationships?
To place the responsibility on the buyer to examine the goods before purchase
ExplanationCaveat emptor places the responsibility on buyers to inspect goods before purchase.
#5
When can a party claim fraudulent misrepresentation based on silence or non-disclosure?
Only if there is a duty to disclose
ExplanationA party can claim fraudulent misrepresentation if there's a duty to disclose information.
#6
What is the primary purpose of the remedy of rescission in cases of misrepresentation?
To restore the parties to their pre-contractual positions
ExplanationRescission aims to return parties to their positions before the contract was formed.
#7
Which type of misrepresentation occurs when a party makes a false statement honestly believing it to be true?
Innocent misrepresentation
ExplanationInnocent misrepresentation happens when a false statement is made without intent to deceive.
#8
In a case of fraudulent misrepresentation, what must the innocent party prove to claim damages?
Proof of reliance and damages suffered
ExplanationThe innocent party must prove they relied on the misrepresentation and suffered damages.
#9
What is the effect of negligent misrepresentation on a contract?
Rescission and damages
ExplanationNegligent misrepresentation can lead to rescission of the contract and claiming damages.
#10
In contract law, what is the difference between an innocent and a negligent misrepresentation?
Intent of the misrepresenting party
ExplanationThe difference lies in the intent of the party making the misrepresentation.
#11
What is the statutory remedy available for misrepresentation under the Misrepresentation Act 1967 in the United Kingdom?
Damages and rescission
ExplanationThe Misrepresentation Act 1967 provides for claiming damages and rescinding the contract.
#12
What is the key element that distinguishes fraudulent misrepresentation from innocent misrepresentation?
Intent to deceive
ExplanationThe crucial difference is the intent to deceive in fraudulent misrepresentation.
#13
In contract law, what is the purpose of the remedy of specific performance?
To enforce the terms of the contract
ExplanationSpecific performance is a remedy to compel parties to fulfill the contract terms.