CIPS L5M3 Exam - Topic 3 Question 61 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 61
Topic #: 3

[All L5M3 Questions]

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

Bclaim damages

Crescind the contract and claim damages

Arescind the contract

Dnothing - this is not a fundamental breach

Show Suggested Answer

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 Chantell at Jan 28, 2026, 02:18 PM

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Malcom

5 days ago

I remember something about party B having the option to seek damages, but I can't recall the specifics.

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Kenny

10 days ago

I think if party A breaches a representation, party B might be able to rescind the contract, but I'm not entirely sure.

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Rolf

15 days ago

I feel pretty confident about this type of question. Representations are statements of fact, so if party A breaches one, party B can usually either terminate the contract or sue for damages, depending on the significance of the breach. I'll make sure to explain that clearly in my answer.

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Tayna

20 days ago

This seems straightforward, but I want to make sure I have the details right. I'll need to review my notes on the differences between warranties, representations, and conditions in contracts, and how breach of each one affects the non-breaching party's options.

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Ernestine

26 days ago

Okay, I've got this. If party A breaches a representation in the contract, party B would typically be able to either rescind the contract or seek damages. The key is understanding the materiality of the representation and how it impacts party B.

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Emile

1 month ago

Hmm, I'm a bit unsure about this one. I know representations are important in contracts, but I can't quite remember the specific legal options party B would have if there's a breach. I'll need to think through the different remedies carefully.

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Barrie

1 month ago

I think this question is asking about the legal remedies available to party B if party A breaches a representation in the contract. I'd start by reviewing the key contract law concepts around representations and the different ways a breach can be addressed.

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