EAQE Law of agency, contract and negligence question: type of misrepresentation

EAA EAQELaw of agency, contract and negligence

A vendor says 'the flat has never had water seepage', knowing it has. The buyer relies on this and buys. What type of misrepresentation is it?

A Innocent misrepresentation
B No misrepresentation, as it was a mere opinion
C A trade puff that no one would rely on
D Fraudulent misrepresentation

Show the answer and explanation

Answer: D. Fraudulent misrepresentation

Answer: Fraudulent misrepresentation. Why not the others: - Innocent: He knew the statement was false. - Mere opinion: 'Never had seepage' is a statement of past fact. - A puff: It is specific and factual, not vague praise. Rule: A misrepresentation is fraudulent if made knowingly, without belief in its truth or recklessly; the victim may rescind and claim damages in the tort of deceit. Negligent and innocent misrepresentations have their own remedies under the Misrepresentation Ordinance. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 3 (misrepresentation); Misrepresentation Ordinance (Cap. 284); as at Oct 2026

Common mistake

Treating factual statements as opinion or puffery.

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An original question written to the published EAQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.