Contract II Misrep & Fraud

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Under which of the following situations might a court not allow a contract to be rescinded due to misrepresentation?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)