Chapter 16 Self-test questions

. Must a representation be false to constitute an actionable misrepresentation?

Yes.

Only for fraudulent misrepresentations.

Only for innocent misrepresentations.

No.

. Which type of misrepresentation may give rise to a right to rescind?

Fraudulent misrepresentations.

Innocent misrepresentations.

Both of the options given are correct.

None of the options given is correct.

. What type of representation was operative in Spice Girls Ltd v Aprilla World Service BV?

Representation of law.

Representation of opinion.

Half-truth.

Representation by conduct.

. When will a representor come under a duty to speak out about particular facts?

In contracts which require the utmost good faith.

Where the representor makes a statement which is true at the time it is made, but later becomes untrue.

Where there is a fiduciary relationship.

All of the options given are correct.

. What is the standard required to avoid a contract for a misrepresentation?

The representee must have entered into the contract in reliance on the statement.

The representation must be the sole reason for the representee's entering into the contract.

The representee must have changed his mind about the desirability of the contract.

All the above options are correct.

. Why might the Supreme Court decision in Hayward v Zurich be controversial?

It did not require the representee to rely on the misrepresentation, for there to be an actionable misrepresentation.

If a person is unaware that a misrepresentation has been made, their claim in misrepresentation will fail.

If a person does not believe the representation made, it follows that the misrepresentation actually influences the representee.

If a person does not believe the representation made, it is doubtful whether the misrepresentation induces the representee to enter into the contract.

. The misrepresentation need only be a reason for the claimant's entering into the contract; it need not be the decisive reason or even the main reason. True or false?

True.

False.

. What is the consequence of an actionable misrepresentation?

It makes the contract void.

It makes the contract voidable.

It automatically rescinds the contract.

It frustrates the contract.

. What is the difference between rescission for misrepresentation and avoidance of contracts for breach?

Rescission puts the parties back into the position in which before the contract was made, avoidance for breach does not.

Avoidance for breach puts the parties back into the position in which before the contract was made, rescission does not.

Rescission preserves the parties' pre-contractual relationship, avoidance for breach wipes this clear.

Rescission and avoidance for breach are exactly the same.

. According to Salt v Stratstone Specialist, which of the following doctrines does not prevent rescission?

Affirmation.

Laches.

Lapse of time.

None of the above options is correct.

. For which of the following types of misrepresentation are damages not available at common law?

Fraudulent misrepresentation.

Negligent misrepresentation.

Innocent misrepresentation.

Common law damages are available for all types of misrepresentation.

. How will a representor be treated if they are liable under section 2(1) Misrepresentation Act 1967?

As if their misrepresentation had been innocent.

As if their misrepresentation had been fraudulent.

As if their misrepresentation had been negligent.

None of the options given is correct.

. Under section 2(2) Misrepresentation Act 1967, when may the court award damages in lieu of rescission?

When the misrepresentation was fraudulent.

When the contract was a bad bargain.

Whenever the court receives it equitable to do so.

Never.

. According to regulation 5(2)(a) of the of the Consumer Protection from Unfair Trading Regulations 2008, when will a representation regarding a commercial practice be misleading?

It contains false information.

Its presentation deceives the average consumer.

It causes the average consumer to take a transactional decision that they would not have taken otherwise.

All of the options given are correct.

. What type of damages are not available under the Consumer Protection from Unfair Trading Regulations 2008?

Damages for financial loss.

Damages for distress.

Damages which were foreseeable at the time of the claim.

Damages which were foreseeable at the time of the prohibited practice.

. What is the effect of the Consumer Protection from Unfair Trading Regulations 2008 on common law rules governing fraudulent consumer practices?

They replace the common law rules.

They complement the common law rules.

They take priority over the common law rules.

They provide the consumer with a less advantageous remedy.

. For which of the following type(s) of misrepresentation may a person never limit their liability?

Fraudulent misrepresentation.

Negligent misrepresentation.

Innocent misrepresentation.

All of the above options are correct.

. If a contracting party wishes to restrict any remedy available to another party to the contract as a result of a misrepresentation, what is the requirement that the term must meet under the Misrepresentation Act?

Necessity.

Reasonableness.

Equitableness.

Fairness.

. Which of the following is an essential part of 'contractual estoppel'?

A representation.

Reliance.

Unconscionability.

None of the above

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