Surry Plc, an Investment Bank, Has Received a Prospectus from Innovatrix

Surry plc, an investment bank, has received a prospectus from Innovatrix Ltd, an internet start-up which provides music downloads to registered customers. On the basis of the prospectus, Surry plc decides to purchase £20,000 worth of shares in Innovatrix. For which of the following statements contained within the prospectus will Surrey not be able to rescind the contract for misrepresentation?

A) 'With the revenue collected from the sale of these shares, Innovatrix plans to expand its facilities in Northhampton.' Actually, it intends to use the money generated by the sale of shares to pay off existing debts.
B) 'With the funds generated from the sale, we will be switching to a more advanced server. This will mean an additional 10,000 users will be able to access our site daily.' This is what the server has informed them. The actual capacity will be only 5,000, meaning a serious drop in advertising revenues.
C) 'Recent judgments in foreign jurisdictions have exonerated websites offering free music downloads. Innovatrix will be able to offer downloads at next to nothing.' A month later, a judgment in the Court of Appeal finds a similar enterprise guilty of copyright infringement and orders it to cease operations and pay damages.
D) This coming year, Innovatrix plans to expand its services to include the free downloading of movies, an area which promises significant returns to investors.' That year Innovatrix has frequent problems with its server crashing because too many people are downloading music. They decide to abandon their plans to expand to movies.