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ACCT252 FINAL EXAM 2026
LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
1. Whether there is misrepresentation? - correct answer -a) A
false statement of fact - Bisset v Wilkinson Case
b) Existing or past fact - Ware v Johnson
c) Pre-contractual statement (made before the parties enter into
the contract)
*If these three things exist there is misrepresentation.
a) A false statement of fact - Bisset v Wilkinson - correct answer
-Case Law: Bisset v Wilkinson
Facts:
- Vendor of a holding, which had not previously been used as a
sheep farm, told prospective purchaser that in his judgement the
carrying capacity of the land was 200 sheep.
- After 2 years of unsuccessful farming, it was realised that the
land could not hold 200 sheep.
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- Purchaser bought an action of misrepresentation to cancel the
contract and get his deposit back.
Held: The statement of the vendor was merely an opinion. It was
not intended to be a serious representation, qualified by any
knowledge. It was known to both parties that the vendor didn't use
the land for sheep farming the statement was purely an opinion /
judgment.
b) Exisiting or past fact - correct answer -A representation
relates to some existing or past event.
Case Law: Ware v Johnson:
Facts:
- The plaintiff agreed to purchase the defendant's kiwifruit orchard
for $368,000.
- 1,605 plants had been planted, and the defendant stated that
the vines would produce their first crop in May 1982.
- They failed to do so. The plaintiff sued for misrepresentation,
among other things.
Held: Defendant was liable for misrepresentation. Although the
defendant's statement was about the future, the statement implies
a statement of present fact, that is the present condition of the
orchard. (Because the statement reflects the present
representation the statement does constitute a misrepresentation.
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c) Pre-contractual statement - correct answer -The
representation which later turns out to be untrue, must be made
during negotiation before the parties enter into the contract.
2. The misrepresentation was made on or behalf of another party.
- correct answer -Case Law: Wakelin v RH & EA Jackson Ltd:
Facts:
- The plaintiff purchased the first defendants' lunch-bar business
called "crumbs"
- Lambert an employee of the second defendant, negotiated the
contract.
- The plaintiff claimed that a number of misrepresentations were
made by Lambert.
- Lambert knew that a competing business was to start in close
vicinity within a short time, but he kept quiet.
Held: At the time of the statements made by Lambert was literally
true. However, his silence regarding the competing business
distorted the truth of the first representation. The statement
distorted the truth by leaving out the relevant matter. The plaintiffs
were entitled to damages.
ACCT252 FINAL EXAM 2026
LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
1. Whether there is misrepresentation? - correct answer -a) A
false statement of fact - Bisset v Wilkinson Case
b) Existing or past fact - Ware v Johnson
c) Pre-contractual statement (made before the parties enter into
the contract)
*If these three things exist there is misrepresentation.
a) A false statement of fact - Bisset v Wilkinson - correct answer
-Case Law: Bisset v Wilkinson
Facts:
- Vendor of a holding, which had not previously been used as a
sheep farm, told prospective purchaser that in his judgement the
carrying capacity of the land was 200 sheep.
- After 2 years of unsuccessful farming, it was realised that the
land could not hold 200 sheep.
, Page | 2
- Purchaser bought an action of misrepresentation to cancel the
contract and get his deposit back.
Held: The statement of the vendor was merely an opinion. It was
not intended to be a serious representation, qualified by any
knowledge. It was known to both parties that the vendor didn't use
the land for sheep farming the statement was purely an opinion /
judgment.
b) Exisiting or past fact - correct answer -A representation
relates to some existing or past event.
Case Law: Ware v Johnson:
Facts:
- The plaintiff agreed to purchase the defendant's kiwifruit orchard
for $368,000.
- 1,605 plants had been planted, and the defendant stated that
the vines would produce their first crop in May 1982.
- They failed to do so. The plaintiff sued for misrepresentation,
among other things.
Held: Defendant was liable for misrepresentation. Although the
defendant's statement was about the future, the statement implies
a statement of present fact, that is the present condition of the
orchard. (Because the statement reflects the present
representation the statement does constitute a misrepresentation.
, Page | 3
c) Pre-contractual statement - correct answer -The
representation which later turns out to be untrue, must be made
during negotiation before the parties enter into the contract.
2. The misrepresentation was made on or behalf of another party.
- correct answer -Case Law: Wakelin v RH & EA Jackson Ltd:
Facts:
- The plaintiff purchased the first defendants' lunch-bar business
called "crumbs"
- Lambert an employee of the second defendant, negotiated the
contract.
- The plaintiff claimed that a number of misrepresentations were
made by Lambert.
- Lambert knew that a competing business was to start in close
vicinity within a short time, but he kept quiet.
Held: At the time of the statements made by Lambert was literally
true. However, his silence regarding the competing business
distorted the truth of the first representation. The statement
distorted the truth by leaving out the relevant matter. The plaintiffs
were entitled to damages.
