1.Easy
According to Derry v Peek, a misrepresentation is fraudulent if the maker:
- AMade a profit from the contract that followed
- BKnew it was false, did not believe it, or was reckless whether it was true
- CMade it carelessly and without checking the facts, though honestly believing it
- DMade it in a written document
2.Easy
A claim on a "quantum meruit" is a claim for:
- APunitive damages for deliberate breach
- BAn order stopping the other party from acting
- CA reasonable sum for work done or services provided
- DThe return of land transferred under the contract
3.Easy
A vague sales claim such as "the best coffee in the world" is usually treated as:
- AA fraudulent misrepresentation
- BA condition of the contract
- CAn implied warranty of quality
- DA mere puff with no legal effect
4.Medium
A seller of land never used for sheep says it could carry 2,000 sheep. Both know he has no experience of sheep farming on it. The statement is most likely:
- AA condition of the contract
- BA fraudulent misrepresentation
- CAn honest opinion, not a misrepresentation
- DA statement of future intention
5.Medium
A builder's job takes much longer and costs much more than planned because of labour shortages. Under Davis Contractors v Fareham UDC, the contract is:
- AAutomatically varied to a reasonable price
- BNot frustrated, because it has only become more onerous
- CFrustrated, because the costs rose unexpectedly and substantially
- DVoid, because the price was wrongly estimated
6.Medium
A buyer is told false figures about a business and is offered documents that would reveal the truth, but does not read them. Under Redgrave v Hurd:
- AThe buyer can claim only half the loss
- BThe buyer can still rely on the misrepresentation
- CThe buyer loses all remedies by failing to check
- DThe misrepresentation becomes a term
7.Hard
In a face-to-face sale, a rogue falsely claims to be a famous actor, pays with a worthless cheque, and sells the car on to an innocent buyer. Under Lewis v Averay, the first contract was:
- AVoid for mistake, so the innocent buyer got no title
- BValid, and the seller could only sue the rogue in tort
- CVoid, because cheques cannot pay for cars
- DVoidable for fraud, so the innocent buyer got good title
8.Hard
A seller mistakenly offers hare skins at a price per pound instead of per piece. The buyer knew that prices were always quoted per piece. In Hartog v Colin and Shields:
- AThere was a binding contract at the stated price
- BThere was no contract, as the buyer knew of the mistake
- CThe contract was voidable at the buyer's option
- DThe court rewrote the price to per piece
Answer key
- 1. B · Knew it was false, did not believe it, or was reckless whether it was true
- 2. C · A reasonable sum for work done or services provided
- 3. D · A mere puff with no legal effect
- 4. C · An honest opinion, not a misrepresentation
- 5. B · Not frustrated, because it has only become more onerous
- 6. B · The buyer can still rely on the misrepresentation
- 7. D · Voidable for fraud, so the innocent buyer got good title
- 8. B · There was no contract, as the buyer knew of the mistake
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