RES exam question on Torts, Mortgages & Co-ownership: A buyer relies on a salesperson's casual verbal estimate of a unit's floor area,…
Case study: A buyer relies on a salesperson's casual verbal estimate of a unit's floor area, which turns out to be wrong. The buyer did not check the title or plans. Which is/are correct? (i) A salesperson can owe a duty of care not to make negligent misstatements that are relied upon (ii) Caveat emptor (buyer beware) still expects buyers to make reasonable checks, e.g. of title and plans (iii) Because property is caveat emptor, a salesperson can never be liable for anything he says (iv) A disclaimer or advice to verify with official sources can limit reliance and liability
- A(i), (ii) and (iv) only
- B(i) and (ii) only
- CAll of the above
- D(i), (ii) and (iii) only
Show answer & explanation
Answer
A. (i), (ii) and (iv) only
Explanation
Issue: Does caveat emptor immunise a salesperson from a careless misstatement? Rule: A salesperson can owe a duty of care against negligent misstatements relied upon; but caveat emptor still expects buyers to make reasonable checks, and a clear disclaimer / advice to verify officially can reduce reliance and exposure. Caveat emptor does not license negligent or false statements. Application: Duty of care (i); buyer's own-check expectation (ii); disclaimers limit reliance (iv). Conclusion: (i), (ii) and (iv) are correct.
Why the other options are wrong
- The trap is (iii): caveat emptor does not make a salesperson immune from a negligent misstatement.
Study the concept behind this question: Property Torts, Mortgages & Co-ownership (Singapore)
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