BCL – L1 – SA – Q30 – Contract Law

Robert makes the following statement while negotiating the sale of his car, “This is the sharpest car on the market.” His statement may support a claim for:

A misrepresentation.

B fraud.

C fraud and misrepresentation.

D none of the above.

D

Explanation:
The statement “This is the sharpest car on the market” is considered puffery, an exaggerated or subjective opinion that is not a verifiable fact. In contract law, misrepresentation and fraud require a false statement of material fact. Puffery does not meet this criterion, as it is not intended to be taken literally or relied upon. Therefore, Robert’s statement cannot support a claim for misrepresentation or fraud. Option D is correct. Options A, B, and C are incorrect because the statement lacks the factual basis required for these claims.