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10 marksContractual Terms and Vitiating Factors

CAPE Law Unit 2 · 2013 · Paper 2 · Question 4(b)(i)

Bolden Ltd purchased a mine based on exaggerated statements by Jamen Ltd about its earning capacity. Bolden Ltd's own expert agents erroneously confirmed the statements as correct. Six months post-sale, Bolden Ltd discovers the inaccuracy and seeks to rescind the contract for misrepresentation.

Advise Bolden Ltd on whether they can rescind the contract.

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Other parts of this question

  1. 4(a)Explain two types of misrepresentation, with reference to decided cases.[10 marks]
  2. 4(b)(ii)Outline the difference it would make if Bolden Ltd had not sought independent advice.[5 marks]

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