LPAB Diploma In Law Practice Questions - Legal Profession Admission Board (NSW) Diploma In Law Examinations Exam

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During negotiations, a vendor of a motel innocently but inaccurately represents the takings as far higher than actual, and the purchaser relies on this in entering the contract. The misrepresentation is not a term. What is the purchaser's primary remedy for an innocent (non-fraudulent, non-negligent) misrepresentation at general law?

Damages in the tort of deceit Specific performance of the misrepresented terms Rescission of the contract, subject to bars such as affirmation and third-party rights An account of profits against the vendor

Correct Answer:

Rescission of the contract, subject to bars such as affirmation and third-party rights

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