Discuss CIMA CIMAPRA17-BA4-1 Exam Topic 4 Question 124

In relation to the law of misrepresentation, which of the following is correct?

AThe innocent party is entitled to claim damages under the tort of negligence for all types of misrepresentation.

BA person is not entitled to rescind a contract which was induced by an innocent misrepresentation.

CA person is only entitled to a remedy under the Misrepresentation Act where the person who made the misrepresentation is a party to the contract.

DThe Misrepresentation Act may be used to obtain damages for fraudulent misrepresentation.

Suggested Answer: C

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20 comments · newest first

Tegan 1 month ago

I feel C is tricky. Misrepresentation should cover all parties involved.

Mabel 1 month ago

B seems wrong. Innocent misrepresentation should allow rescission.

Thaddeus 2 months ago

A is too broad. Only negligence applies there.

Chauncey 2 months ago

I’m not sure about D. What about A? Can we claim damages for all misrepresentations?

Nicolette 2 months ago

I agree with D too. It’s clear in the Act.

Jacqueline 2 months ago

I think option D is correct. Fraudulent misrepresentation deserves damages.

Thurman 2 months ago

C sounds right, but it’s a bit tricky. Misrepresentation can be complicated!

Oliva 2 months ago

B is true, you can't rescind for innocent misrepresentation.

Honey 3 months ago

Wait, can you really not rescind for innocent misrepresentation? That seems odd.

Elliott 3 months ago

I disagree, A is misleading. Damages aren't always available for all misrepresentations.

Jess 3 months ago

D is correct! Fraudulent misrepresentation can lead to damages.

Laticia 3 months ago

C is wrong, you can get remedies even if the misrepresentor isn't a party.

Sean 3 months ago

Totally agree with D! Fraudulent misrepresentation definitely allows for damages.

Kenda 4 months ago

Wait, is it true you can't rescind for innocent misrepresentation? That seems off.

Rory 5 months ago

I thought you could rescind for innocent misrepresentation?

Rickie 5 months ago

D is correct, you can claim damages for fraudulent misrepresentation.

Virgie 6 months ago

I think option C might be tricky. I remember we talked about how the misrepresentation needs to be made by a party to the contract for certain remedies to apply.

Alaine 6 months ago

I feel like we had a practice question about damages and misrepresentation, but I can't recall if it was specifically about negligence or something else.

Armanda 6 months ago

I'm not entirely sure, but I remember something about rescission not being available for innocent misrepresentation. Is that what option B is saying?

Glendora 6 months ago

I think option D sounds familiar because we discussed how the Misrepresentation Act can provide remedies for fraudulent misrepresentation in class.

CIMAPRA17-BA4-1 Exam - Topic 4 Question 124 Discussion