Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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If misrepresentation exists, what option is available?

The contract may be rescinded
The court may enforce the terms and conditions
The contract cannot be canceled
The parties must renegotiate the terms

The correct answer is: The contract may be rescinded

If misrepresentation exists, the other options are incorrect because they do not address the issue of misrepresentation. Option B involves the court enforcing the terms and conditions, which would not address the issue of misrepresentation. Option C states that the contract cannot be canceled, which is not necessarily true if misrepresentation exists. Option D suggests that the parties must renegotiate the terms, but this does not address the issue of misrepresentation either. The correct answer is A because misrepresentation is a form of deceit that can render a contract voidable. This means that the innocent party may choose to rescind or cancel the contract and be released from their obligations.