WorksheetsContract II Misrep & Fraud
Total questions: 9
Worksheet time: 6mins
Which of the following is not a requirement for proving fraudulent misrepresentation in contract law?
The statement was made knowingly or recklessly without regard for its truth
The false statement must relate to a past or existing fact
The statement was intended to deceive and induce the other party to enter into the contract
The contract was breached due to a misunderstanding by both parties
What is the primary remedy available to a party who has entered into a contract due to fraudulent misrepresentation?
Rescission and indemnity
Restitution of the contract’s performance
Rescission of the contract and/or damages
Specific performance of the contract
Under which of the following situations might a court not allow a contract to be rescinded due to misrepresentation?
The misrepresentation was immaterial to the contract.
The contract has been fully performed by both parties.
The misrepresentation affected a minor term of the contract.
The contract was signed under physical duress
Which of the following best summarizes the decision in Smith v Land and House Property Corp (1884)?
Statements of opinion can amount to misrepresentation if the person giving the opinion has special knowledge.
Statements of opinion are never considered misrepresentation under contract law.
Misrepresentations made by omission are not actionable
A party cannot claim misrepresentation if the other party is unaware of the contract’s terms.
In Attwood v Small (1838), why was the buyer unable to claim misrepresentation?
The buyer failed to check the accuracy of the statements themselves.
The buyer relied on their own surveyor's report rather than the seller’s statements.
The seller made no statements that could be deemed misleading.
The contract included a waiver of liability for misrepresentation.
In the case of With v O’Flanagan (1936), what was the significance of the court’s ruling on a change of circumstances?
A misrepresentation claim cannot be based on changes that occur after contract formation.
Only initial false statements are actionable; changes in circumstances are not relevant.
Changes in circumstances are only relevant if they occur within a specified time frame.
A statement that becomes false due to a change in circumstances must be corrected, or it could amount to misrepresentation.
In Bisset v Wilkinson (1927), why was the seller's statement about the land's capacity not considered misrepresentation?
The statement was made with intent to deceive.
The seller had special expertise in land development.
The statement was a mere opinion, not a factual misrepresentation.
The buyer had waived their right to claim misrepresentation.
In order to prove inducement in a misrepresentation case, the claimant typically will demonstrate these, EXCEPT:
That the misrepresentation was made with an intent to deceive.
That the misrepresentation was material to the contract, regardless of their knowledge.
That they relied on the misrepresentation in making the decision to enter the contract.
That they diligently verified the information given by the other party.
Which of the following cases highlights the principle that a claimant cannot claim inducement if they did not rely on the misrepresentation when entering into the contract?
Edgington v Fitzmaurice (1885)
Attwood v Small (1838)
Keates v The Earl of Cadogan (1851)
Horsfall v Thomas (1862)
