ICAEW BL · Chapter 3 · Question 10 of 10
Which of the following statements made during negotiations is LEAST likely to amount to an actionable misrepresentation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A seller with no farming experience says she thinks an orchard could produce about 20 tonnes of apples a year, a figure she has never tested
Explanation
A misrepresentation is an untrue statement of fact (or law) that induces the contract. A statement of opinion honestly held by someone with no special knowledge is generally not a statement of fact (Bisset v Wilkinson, where an inexperienced seller's estimate of a farm's sheep-carrying capacity was opinion). The other options are statements of existing fact about turnover, planning status and lease length, and each could be an actionable misrepresentation if relied on.
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