Explain results of misrepresentation and its consequences

Question

Explain results of misrepresentation and also its consequences?

Answer 1

Misrepresentation may result in one or more of these consequences:

1. Rescission: Contract is voidable or cancellable at the option of the victim, aim is to restore the parties to their pre-contract state.

2. Restitution: It involves the giving back of benefits already received under the contract, e.g., supplies or funds; it often accompanies rescission.

3. Damages: Monetary compensation for losses that a person suffered as a result of relying on a misrepresentation (arise under tort law).