Week 7 Fraud & Misrepresentation

Which of the followings are elements of misrepresentation?

• It did actually induce the contract.

• Duty of Care.

• Breach of Contract.

• Representation must be one of fact.

Which section of the Contracts Act 1950 mentioned

"When consent to an agreement is caused by

coercion, fraud, or misrepresentation,

the agreement is a contract voidable at the

option of the party whose consent was so caused"

• Section 14

• Section 17

• Section 19

• Section 20

The previous owner's statement of "the creek had never run dry" does not constitute as misrepresentation.

• TRUE

• FALSE

What are the 3 types of misrepresentation?

• Innocent misrepresentation

• Negligent misrepresentation

• Fraudulent misrepresentation

• Ignorant misrepresentation

What are Bill's options if misrepresentation is held.

• Rescind the contract and claim damages.

• Claim damages only.

• Contract is non-voidable.

• Proceed with contract and claim damages.

What is the difference between innocent misrepresentation and

negligent misrepresentation?

• Both are exactly the same.

• Representor honestly believed false statement to be true.

• Presence of duty of care.

• Representor makes a false statement without believing it to be true.