Which of the following statements best describes alleged misrepresentation?

• A. Misrepresentation is only about false statements of fact
• B. Advertising puff is always a misrepresentation
• C. Misrepresentation may be fraudulent, negligent, or innocent and remedies include rescission and/or damages
• D. Misrepresentation cannot be remedied after completion

Answer: (C)

Misrepresentation in contract law covers more than just false statements of fact; it includes false statements of fact, law, or even misrepresentation by omission where there’s a duty to disclose, and it can be fraudulent, negligent, or innocent. The remedies reflect this range: you can seek rescission to undo the contract, and you can also claim damages for the misrepresentation, with the possibility of damages in lieu of rescission under the Misrepresentation Act 1967. Advertising puff is usually not a misrepresentation because it’s exaggerated marketing rather than a factual assertion. And remedies can still be available after completion in the right circumstances, especially in relation to damages. So the statement that best describes misrepresentation is that it may be fraudulent, negligent, or innocent and remedies include rescission and/or damages.