6. What is the claimant therefore entitled to recover?
Nothing, the claimant can only seek rescission of the contract
Potentially all losses providing a causal link can be established between misrepresentation and loss and thus no limit on liability
Damages which are limited to those which are foreseeable
7. Which case illustrates the above point?
Naughton -v- O
Smith & New Court Securities Ltd -v- Scrimgeour Vickers (Asset Management) Ltd
Howard Marine Dredging Co Ltd -v- A Ogden & Sons (Excavations) Ltd
Derry -v- Peek
8. Which case illustrates the point that a claimant only has to show a "causal link" (losses occurred as a result of the misrepresentation)?
Royscot Trust Ltd -v- Rogerson
Naughton -v- O
Howard Marine Dredging Co Ltd -v- A Ogden & Sons (Excavations) Ltd
Smith & New Court Securities Ltd -v- Scrimgeour Vickers (Asset Management) Ltd
9. The remedy of rescission can be demanded from the courts
False
True
10. Claims for negligent misrepresentation are made under s2 (1) of the Misrepresentation Act 1967
True
False
11. When will a claimant be able to make a claim for negligent misrepresentation?
If the defendant cannot demonstrate he believed his statement to be true when he made it
Where the defendant had reasonable grounds to believe and did believe the statement to be true when it was made
12. Which case illustrates negligent misrepresentation?
Howard Marine Dredging Co Ltd -v- A Ogden (Excavations) Ltd
Naughton -v- O
Smith & New Court Securities Ltd -v- Scrimgeour Vickers (Asset Management) Ltd
Royscott Trust Ltd -v- Rogerson
13. What type of remedy is available for negligent misrepresentation?
Rescission plus damages
Damages only
Rescission only
14. Damages for negligent misrepresentation are now assessed on a tortious basis and not subject to limitations such as reasonable foreseeability as for damages in contract law
True
False
15. Innocent misrepresentation arises where one party to a contract makes a false statement but he has reasonable grounds to believe it was true when he made it
True
False
16. What is the type of remedy available for innocent misrepresentation?
Rescission
Damages
Damages and rescission
17. The court more often awards damages (monetary compensation) instead of damages
True
False
18. The court cannot award both remedies and if the court decides that rescission is not available then the right to damages is also lost
