If replies to enquiries are incorrect, what may be the consequence?

• A. No liability arises.
• B. The contract is immediately void.
• C. There may be liability under the Misrepresentation Act 1967.
• D. Criminal penalties.

Answer: (C)

Incorrect replies to enquiries about a property can amount to misrepresentation if they are statements of fact that the other party relies on when deciding to enter the contract. The Misrepresentation Act 1967 provides civil remedies for misrepresentation in contract, so the injured party may claim damages or seek rescission of the contract. This remedy can apply even if the misrepresentation wasn’t intentional, as long as it’s a factual misstatement that influenced the deal. Criminal penalties don’t apply unless there’s fraud, and the contract isn’t automatically voided simply because a reply was incorrect. So the consequence is potential liability under the Misrepresentation Act 1967.