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In March a buyer entered into a contract for the purchase of a children’s nursery because of a fraudulent statement made by the seller in January about the previous year’s sales figures.
In April, after purchasing the nursery, the buyer employed a builder to carry out extensive building works to the nursery including demolishing outbuildings and adding an extension.
In May the buyer discovered the fraudulent statement was false and decided that he wished to rescind the contract.
Could the buyer rescind the contract?
A. No, because rescission is not an available remedy for misrepresentation.
B. No, because a third party has acquired rights.
C. No, because the buyer has affirmed the contract.
D. No, because restitution is impossible.
E. No, because there is a statutory bar under the Misrepresentation Act 1967.
D - No, because restitution is impossible.
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Find out what happens after passing the SQE and admission to the roll of solicitors.