The Contract for the Surrey Property Had Been Signed by Both

question 23

Multiple Choice

The contract for the Surrey property had been signed by both parties.Which of the following is necessary for the contract to be set aside on the grounds of misrepresentation?

• A)The misrepresentation must have been a false statement of a fact; false statements of opinion are never misrepresentations.
• B)The misrepresentation must have been in writing.
• C)The misrepresentation must have been a term of the contract.
• D)The misrepresentation must have been made recklessly or wilfully.
• E)The misrepresentation must have induced the party to enter the contract.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life, often considered in depreciation calculations.

Depreciation Expense

The cost allocated to reflect the reduction in value of a tangible asset over its useful life, as part of the wear and tear or obsolescence.