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CIPS L5M3 Exam - Topic 1 Question 63 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 63
Topic #: 1
[All L5M3 Questions]

A breach of representation by party A in a contract would allow party B to do what?

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Suggested Answer: C

A breach of representation is a major/ fundamental breach and allows the innocent party to rescind the contract and claim damages. A Breach of Representation is when you provide false information about who you are- this might have been a fundamental reason as to why the contract went ahead. If it turns out not to be true, the other party has the right to cancel the contract and claim damages. See p.126


by Vincenza at Mar 31, 2026, 07:30 PM

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Gladys
4 days ago
I’m a bit confused about what constitutes a fundamental breach. I thought a breach of representation was serious enough for B to take action.
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Leonora
9 days ago
I remember practicing a similar question where we discussed rescission and damages together. I feel like the answer could be C.
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Norah
14 days ago
I think a breach of representation might let party B rescind the contract, but I'm not sure if they can also claim damages.
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