- 4 Marks
Question
A contract can be affected by vitiating factors, of which misrepresentation is an example.
Required:
i. What is misrepresentation? State any ONE type of misrepresentation. (2 Marks)
ii. State any TWO effects of misrepresentation on contracts. (2 Marks)
Answer
Misrepresentation is an untrue statement of fact that induces one of the parties to enter into a contract.
One type of misrepresentation is fraudulent misrepresentation, which occurs when the false statement is made knowingly, or without belief in its truth, or recklessly without caring if it is true or false.
ii. Effects of misrepresentation on contracts:
- The offended party may void the contract.
- The party that was misled may rescind the contract and sue for damages.
- Tags: Contract Law, Misrepresentation, Vitiating Factors
- Level: Level 1
- Topic: Contract Law
- Series: MAY 2015
- Uploader: Joseph