4. Contract Law

Misrepresentation — Quiz

Test your understanding of misrepresentation with 5 practice questions.

Practice Questions

Question 1

A seller makes a statement about the profitability of a business, which they genuinely believe to be true. However, they had no reasonable grounds for this belief, and the statement turns out to be false. What type of misrepresentation is this?

Question 2

In a claim for negligent misrepresentation under Section 2(1) of the Misrepresentation Act 1967, what is the standard measure of damages applied by the courts?

Question 3

Which of the following is a key distinction between the common law action for negligent misstatement (under \text{Hedley Byrne v Heller}) and negligent misrepresentation under Section 2(1) of the Misrepresentation Act 1967?

Question 4

A buyer is induced to purchase a rare book by a misrepresentation that it is a first edition. After discovering the book is a second edition, the buyer decides to keep the book and display it prominently in their collection for several months. Which bar to rescission is most likely to apply?

Question 5

Under Section 2(2) of the Misrepresentation Act 1967, a court has the discretion to award damages in lieu of rescission. What is the primary factor the court considers when deciding whether to exercise this discretion?