Misrepresentation

Question 1

An actionable misrepresentation requires a ________ statement of ____ or ___ to be made by one party to another to _______ them to enter into a contract

Answer 1

false, fact, law, induce

Question 2

A statement of fact relates to information ____ or _________ - _______ events do not count

Answer 2

past, present, future

Question 3

A statement of ___________ is a statement of fact, but is actionable only if it can be proved the speaker did not genuinely have the _________ when they said they did

Answer 3

intention, intention

Question 4

Generally, there is no duty to disclose facts which would affect the other party’s decision to enter into the contract

As an exception to this rule, can silence ever by an actionable misstatement?

Answer 4

Yes

Question 5

Silence is actionable as a misstatement in contracts ___________ ____ e.g. when a person buys life insurance

Answer 5

uberrimae fidei

Question 6

Silence is actionable as a misstatement when _______ disclosure would be misleading

Answer 6

partial

Question 7

Silence is actionable as a misstatement if an _______ representation has become _______

Answer 7

earlier, untrue

Question 8

Does mere puff amount to misrepresentation?

Answer 8

No - not when a reasonable person wouldn’t rely on it in entering the contract

Question 9

Fraudulent misrepresentation requires a false statement made _________, or ________ as to its truth, or without _______ in its truth

Answer 9

knowingly, recklessly, belief

Question 10

Negligent misrepresentation requires a false statement where the speaker can’t prove they had _________ ______ for believing it when made

Answer 10

reasonable grounds

Question 11

Innocent misrepresentation is where the speaker __________ _________ the statement to be true

Answer 11

reasonably believed

Question 12

A contract based on any misrepresentation is _______ at the option of the ______ party. They can ______ the contract or seek ______ for the misrepresentation

Answer 12

voidable, innocent, rescind, damages

Question 13

Rescission puts the parties _____ into the position they would have been had the _____________ never taken place

Answer 13

back, misrepresentation

Question 14

What are the 4 bars to rescission as a remedy for a misrepresentation claim?

Answer 14

1. Affirmation
2. Lapse of time
3. Impossibility of restitution
4. Bona fide third-party purchaser has gained rights in subject matter

Question 15

If the innocent party can prove the misrepresentation was __________, they can recover all their losses incurred. A similar result occurs if the misrepresenting party can’t _________ negligence

Answer 15

fraudulent, disprove

Question 16

Describe the remedies available for the following types of misrepresentation:
1. Fraudulent
2. Negligent
3. Innocent

Answer 16

1. Fraudulent - Rescission and damages
2. Negligent - Rescission and damages
3. Innocent - Rescission or damages in lieu of rescission

Question 17

The normal measure of damages includes ______ incurred as a result of entering into the contract and ________ expenditure

Answer 17

losses, incidental

Question 18

Exclusion of liability or remedy for misrepresentation will be _____ unless it’s _________

Answer 18

void, reasonable