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- Part Three - Vitiating Factors
- Chapter 10 - Misrepresentation
H. Overview
Author | John D. McCamus |
Profession | Professor of Law. Osgoode Hall Law School, York University |
Pages | 360-361 |
Page 360
As we have seen, the remedies available to an individual who has been induced to enter into a contract on the basis of a false statement of fact include rescission for misrepresentation and claims for damages in tort where the representation has been made fraudulently or carelessly. The remedial options available at common law and equity are summarized in Table 10.1.
Table 10.1 Remedies for Misrepresentation
[SEE ATTACHED PDF]
As Table 10.1 illustrates, the least attractive remedial position for a misrepresentee is to be the victim of a non-careless, innocent misrepresentation. Such a person is not able to claim common law compensatory damages in tort. Further, although a claim for rescission in equity may be possible, rescissionary relief, as we have seen, may disappear rather quickly. Thus, for example, where a consumer buyer has been led to purchase a defective item on the basis of misleading but non-careless misrepresentations by the seller, the consumer victim may be without effective redress. Such circumstances have led to a variety of ameliorating techniques such as lowering the bars to rescission and recognition of a doctrine of error in substantialibus,153the effect of the latter being one of permitting rescission at a later stage than it would be available for mere misrepresentation. Perhaps the most important ameliorating device, however, is that of transforming the representation of fact into a contractual promise through the device of "collateral contract." The analytical means by which a...
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