Before Leo bought a flat, the seller told him in writing that there were no disputes with neighbours. In fact a boundary claim had been issued against the seller a month earlier. What is Leo's main remedy if he can prove the statement was false and induced him to buy?
A false statement of fact that induces a contract is a misrepresentation, which makes the contract voidable. The innocent party may seek rescission and, depending on whether it was fraudulent, negligent or innocent, damages (Misrepresentation Act 1967 s2). Caveat emptor does not protect a seller who answers enquiries falsely. The Consumer Rights Act 2015 covers traders' contracts with consumers, not a private sale between individuals, and the FOS deals with complaints against regulated financial firms, not private sellers.
Assuming caveat emptor protects a seller who gave a false answer to a pre-contract enquiry.
Practise more FRE1 Legal Concepts: Contract, Agency, Property, Insolvency, Wills & Trusts questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practising →Original practice material mapped to the published CeMAP FRE1 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.
