782. Contracts induced by misrepresentation normally voidable, not void.

In general a contract induced by misrepresentation is valid until disaffirmed, not invalid ab initio, that is to say it is voidable, not void1. The consequences of this rule are of importance in relation both to the conditions of relief2, and also to some of the affirmative defences which may be set up by the representor3.

There is one exception, apparent rather than real, to the rule. When the misrepresentation relates to the essential nature of the contract which the representee