Realex Ltd is active in commercial real estate and is looking to buy several properties for different purposes. Realex makes three purchases in the span of a week. In which of the following scenarios can the contract be rescinded for misrepresentation?
A) A car dealership. Realex wishes to turn the building into a supermarket and asks Hannah, its current owner, whether that would be possible. Hannah replies that that wouldn't be a problem, although the building has never been used for retail purposes before.
B) A hotel. Realex wishes to let it as luxury apartments. Geoffrey, a lawyer and its current owner, is asked whether any planning permission would be needed before doing so and he replies 'not to my knowledge', although he has never bothered to check.
C) A restaurant owned by Yolanda. A year prior to the sale, the interior was completely redecorated. In the process of those redecorations, the contractor unknowingly painted over and concealed dry rot in the walls near the lavatories. Realex decides to renovate the interior and discovers the dry rot.
Correct Answer:
Verified
Q1: Every misrepresentation can give rise to an
Q2: Aquafun Co is looking to purchase a
Q3: Mick buys a suit in a clothing
Q4: Surry plc, an investment bank, has received
Q5: Consider the following two statements.
I.A misrepresentation can
Q7: According to section 2(1) of the Misrepresentation
Q8: Section 2(2) of the Misrepresentation Act (MA)
Q9: Liability for misrepresentation cannot be contractually excluded.
Q10: Wesley has decided to sell his IT
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents