CIMAPRA17-BA4-1 Exam - Topic 2 Question 114 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 114
Topic #: 2

Which of the following statements is correct in relation to a misrepresentation?

AA person selling goods may be hekJ liable in misrepresentation if he or she remains silent during the negotiations and fails to correct any misunderstandings on the part of the buyer

BA misrepresentation is a false statement of fact or opinion made by one person to another before a contract is formed and which causes the contract to be automatically cancelled

CIf a person can show that he or she was induced to contract by a misrepresentation then a court must grant a remedy, irrespective of the time taken to commence the action against the misrepresents.

DIf one person attempts to persuade another to enter into a contract by misrepresenting the facts, the intended victim will have a remedy, unless the misrepresentation did not induce the intended victim to contract

Show Suggested Answer

Suggested Answer: C

by Alesia at Jul 08, 2025, 05:19 PM

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Jeanice

4 months ago

D is spot on, inducing the contract is key for a remedy.

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Danica

4 months ago

I disagree, B is misleading about automatic cancellation.

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Filiberto

5 months ago

Wait, really? I thought any misrepresentation always led to a remedy!

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Elouise

5 months ago

C is incorrect, timing does matter for remedies.

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Julie

5 months ago

A is true, silence can lead to liability!

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Katina

5 months ago

C seems a bit off to me. I feel like there are time limits for bringing actions in misrepresentation cases, but I can't remember the specifics.

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Devora

6 months ago

I recall a practice question similar to D, where the focus was on whether the misrepresentation induced the contract. That seems important.

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Lang

6 months ago

I'm not sure about B; I thought misrepresentation could lead to a contract being voidable, but not necessarily automatically cancelled.

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My

6 months ago

I think option A might be correct because I remember something about silence in negotiations leading to liability if misunderstandings aren't corrected.

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Lorean

6 months ago

I'm a bit confused by the differences between options B, C, and D. I'll need to review my notes on the remedies for misrepresentation to pick the best answer.

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Isabella

6 months ago

Option A sounds right to me - if the seller knows the buyer has a misunderstanding, they have a duty to correct it. I'm pretty confident that's the right answer.

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Karima

7 months ago

Hmm, the wording of these options is tricky. I'll need to carefully read through each one to determine which statement is correct.

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Denae

7 months ago

This question seems straightforward, but I want to make sure I understand the nuances of misrepresentation before answering.

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