Misrep & Mistake

Which one of the following is not a requirement for a misrepresentation to be actionable?

• The maker of the statement must have known it was untrue

• A statement of fact must have been made

• The statement must be untrue

• The statement must have induced the innocent party to enter the contract

Which one of the following statements is incorrect?

• Keeping silent about a change in circumstances which renders a statement made untrue may amount to a misrep

• The untrue statement must have been made before or at the time of making the contract

• The statement made can be one of fact or opinion in order to amount to misrep

• To be an actionable misrep, the statement must be one of existing fact, not something in the future

Which one of the following is not a type of misrepresentation?

• Honest Misrep

• Innocent Misrep

• Fraudulent Misrep

• Negligent Misrep

Which one of the following statements is incorrect?

• Negligent misrep at CL was established by Hedley Byrne v Heller

• Fraudulent misrep was established in Derry v Peek

• Remaining silent can amount to misrep

• A fiduciary relationship comes with a duty to disclose

Which one of the following statements is incorrect in relation to remedies for misrepresentation?

• Rescission will not be ordered where it is impossible to return the parties to their original, pre-contractual position

• Rescission is available for all four types of misrep

• The courts take into account what type of misrep has occurred when awarding damages

• When a party is induced into a contract by misrep, they have a right to damages for any loss

Max offered to Tom a private sale of his car. Max told Tom that it had travelled only 50,000 miles. In fact Max had forgotten that there had been a fault on the odometer and the car had actually travelled 52,000.

Which of the following is correct?

• Max's statement is a mere opinion

• Max's statement amounts to a misrep as he had expertise

• Max's statement amounts to a misrep as he should have had knowledge

Gerald is offered a 2008 BMW car for £25,000 and is told by the dealer that the car has only been driven for 26,000 miles. In fact the car has been driven for 56,000 miles. Which of the following statements will prevent Gerald from suing for misrepresentation?

(i) Gerald knew the previous owner and was aware that the car had been driven for more than 26,000 miles.

(ii) Gerald was not concerned with the mileage of the car but its age.

(iii) Gerald had relied on the mileage given and this was an important consideration in buying the car.

(iv) The logbook of the car would have revealed the true mileage of the car but Gerald did not examine this document even though this document was made available to him.

• (iii) & (iv)

• (i) & (ii)

• (iv)

• (iii)

Which one of the following is not a general rule applying to the area of mistake?

• In deciding whether a mistake is sufficient to void a contract, the courts will look at the facts objectively

• The mistake must induce the contract

• The mistake must precede the contract

• Only a mistake of fact can affect the validity of the contract

Equity and common law rules exist to govern the area of mistake in relation to contracts.

• True

• False

Which one of the following is incorrect in relation to common mistake?

• In most cases, a mistake as to quality of the subject matter will not invalidate a contract

• A shared mistake will only render a contract void if it amounts to a fundamental mistake

• A mistake as to title is not sufficient to amount to a fundamental mistake

• A contract will not be void for common mistake if the mistake is due to the fault of one of the parties