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LAW OF CONTRACT
MISTAKE AND MISREPRESENTATION

Question 1
"The State of a man’s mind is as much a fact as his state of digestion" is a
statement in relation to: Select one:
A. Reliance in misrepresentation
B. Recklessness in fraudulent misrepresentation
C. Statement of fact in misrepresentation
D. Carelessness in fraudulent misrepresentation
E. Opinion in misrepresentation

Question 2
For fraudulent misrepresentation, which of the following remedies is available?
Select one:
A. Damages only
B. Rescission and Damages
C. Rescission only
D. Indemnity and Rescission
E. Indemnity only

Question 3
For innocent misrepresentation, which of the following remedies is available? Select one:
A. Damages are available
B. Only rescission is available
C. Only Indemnity is available
D. Damages and rescission are available
E. Indemnity and Rescission are available

Question 4
A solicitor purchased into the partnership in a solicitors' firm. He was told the
partnership had an income of £300 per year and was given the opportunity to
look at the accounts. He declined the offer to check the accounts and took them
at their word. In fact, the income was only £200 per year. Which of the following is
true?
Select one:
A. The fact that the claimant had declined the offer to check the books
reinforced his reliance according to Attwood v. Small
B. The fact that the claimant had declined the offer to check the books
reinforced his reliance according to Redgrave v. Hurd
C. The fact that the claimant had declined the offer to check the books
negated his reliance according to Attwood v. Small
D. The fact that the claimant had declined the offer to check the books
negated his reliance according to Redgrave v Hurd
E. The fact that the claimant declined to checks the books is inconsequential
to his reliance

Question 5
For negligent misrepresentation, a duty of care will arise? Select one:
A. Only when there is a contractual relationship
B. When there is a serious relationship between the parties
C. When there is a close relationship between the parties
D. When there is either a fiduciary or a contractual relationship
E. Only when there is a fiduciary relationship

Question 6
The principle that persons dealing with each other inter praesentes intend to
contract with each other was rebutted in which of the following cases?
Select one:
A. Philips v. Brooks
B. Ingram v. Little
C. Lewis v. Avery
D. Shogan Finance v. Hudson
E. Lake v. Simmons

Question 7
Where the parties are agreed from all outward appearances on the same terms
and on the same subject matter but both are mistaken in their minds about the
quality of the subject matter, the contract will be:

Select one:
A. Void for misrepresentation
B. Void for mistake
C. Voidable for misrepresentation
D. Voidable for mistake
E. Valid

Question 8
The ITWF blacked a ship to prevent it from leaving a port. They made several
demands in relation to pay and conditions of service and required the ship owners
to pay a large sum of money to the Seafarers International Welfare Fund. The ship
owners agreed in order that the ship could leave port and then sought to recover
the sum paid to the welfare fund. Which case is this?

Select one:

A. Pao On v. Law Yiu Long

B. The Simeon and the Sibotre
C. The Universe Sentinel
D. Occidental Worldwide Investments v. Skibs
E. The Atlantic Baron

Question 9
Where a mistake is made as to the identity of the other contracting party, the
general rule is that for the mistake to be operative, the mistake must relate to:
Select one:
A. The attributes but not the identity of the rogue
B. The identity but not the attributes of the rogue
C. Either the identity or attributes of the rogue
D. Neither the attributes nor the identity of the rogue
E. The identity and the attributes of the rogue

Question 10
According to Quao v. Squire, as between two innocent parties, who should bear
the brunt of the trickery of a rogue?

Select one:

A. The original owner of the item

B. The buyer of the item
C. The most equitable party
D. The third party purchaser
E. The most blameworthy party

Question 11
Which of the following will support an actionable misrepresentation? Select one:
A. Lies about the state of man’s digestion
B. A statement of an existing fact
C. A statement of future intent
D. Forecasts
E. Opinion of experts

Question 12
In which case(s) would a shop not be liable for misrepresentation for falsely
describing a product? Select one:
A. If the customer was not offered the chance to inspect the manual
B. If the owner of the shop offered the description
C. If an employee of the shop offered the description
D. If the customer did not pay attention to the description and relied on his
own evidence instead
E. B and C above

Question 13
If Kukua buys from Maame Afra a picture both of them believed to be a Constable
as Maame Afra says, but it turns out to be a modern copy of the picture, in equity,
the best result for Kukua may be:
Select one:
A. Voidable for mistake
B. Valid
C. Voidable for misrepresentation and Voidable for mistake
D. Void for misrepresentation
E. Voidable for misrepresentation

Question 14
Silence can constitute misrepresentation in the following circumstances, except:
Select one:
A. When there is partial disclosure
B. In passive acquiescence in self deception
C. In Contracts uberrimae fidei
D. Where silence distorts previous representations
E. Non-disclosure of material facts in contracts of utmost good faith

Question 15
Which of the following statements is most likely to succeed as the basis for a
claim of misrepresentation, if false?
Select one:

A. This TV is the best in the world

B. This TV receives FM
C. This TV lasted for 100 years
D. This TV should receive FM
E. B and C above

Question 16
If Abokuma buys from Emmanuel a picture both of them believed to be a
Constable as Emmanuel honestly says, but it turns out to be a modern copy of the
picture rendering the picture radically different from what the parties agreed to,
the contract would be:

Select one:

A. Always Valid
B. Voidable for misrepresentation only
C. Voidable for mistake
D. Void for mistake and Void for misrepresentation
E. Void for mistake and Voidable for misrepresentation

Question 17
Which of the following is not a requirement of common mistake? Select one:
A. The non-existence of the state of affairs must not be attributable to the
fault of either party
B. The non-existence of the state of affairs must render performance of the
contract inconvenient
C. The parties should not be at cross purposes regarding the mistake
D. There must be no warranty by either party that the state of affairs exists
E. There must be a common assumption as to the existence of a state of
affairs

Question 18
Esi’s contract with Ama is affected by mistake res extincta, the contract will be
Select one:
A. Voidable
B. Valid
C. Void
D. Neither void nor voidable
E. Unenforceable

Question 19
Great Peace Shipping Co v Tsavliris is authority for the principle that: Select one:
A. Common mistakes will always nullify an agreement
B. Distance cannot be "quality"
C. Silence does not generally amount to a misrepresentation
D. Mutual mistakes, where the parties are at cross purpose will always nullify
an agreement
E. A mistake as to quality will not generally be an operative mistake

Question 20
In equity, mistake cannot operate as Select one:
A. A defence in an action against specific performance
B. A ground for rectification
C. A ground for rescission
D. To make a contract voidable
E. None of the above