Reference no: EM132533082

Q1. What best describes the law of interpretation?

a) the courts will not imply a term into a contract if the parties have left it out

b) express terms will be decided based only on the surrounding contextual circumstances

c) contra proferentum means that the insurance companies always lose

d) the courts will imply terms into a contract

Q2. What best describes misrepresentation?

a) Rescission is not possible for innocent misrepresentation

b) You do not need to disclose latent defects in real estate

c) An opinion cannot be a misrepresentation because it is not a statement of fact

d) Parties can use an entire agreement clause to protect only against innocent and negligent misrepresentation

Q3. Two sons inherit their family home when their elderly mother dies. One son was told that the mother died in hospital but she in fact died in the house. The purchasers were adamant that they would not purchase the home is she had die in it, so asked the son. He said she had died in hospital and that he had an ambulance receipt he could show them. The real estate agent was asked and although she was aware a neighbor had found the mother and then called an ambulance, said the woman had died in hospital, so the purchasers went ahead and bought the home based on her advice. They have now found out the truth from the neighbor. Which is the best answer?

a) The purchaser can sue the son for negligent misrepresentation

b) If there is an misrepresentation by the son, the facts would allow the purchaser to sue for either rescission or damages

c) The purchaser cannot sue the son as she was not induced to enter into the contract by him

d) The purchaser can sue the agent for negligent misrepresentation

Q4. A fraudulent misrepresentation can result in which of the following remedies?

a) Rescission or damages

b) Rescission only

c) rectification

d) Damages only

Q5. The best answer regarding insurance is:

a) An insurance policy is voidable by the insurer where the insured has failed to disclose relevant facts within their knowledge in their applicable for the insurance

b) Claims for business interruption include wrongs committed by the business against a third party

c) The duty of utmost good faith requires an insured to not engage in criminal or tortuous acts, other than negligence, and then enforce a claim for coverage

d) Where an accident is caused by the negligence of a third party, the insurance company through subrogation may recover any funds they have paid to their insured