701. Misrepresentation as a ground for the rescission of a contract or the award of damages.

A misrepresentation is a positive statement of fact or law1, which is made or adopted by a party to a contract and is untrue. It may be made fraudulently, carelessly or innocently2. Where one person ('the representor')3 makes a misrepresentation4 to another ('the representee')5 which has the object and result of inducing the representee to enter into a contract or other binding transaction with him, the representee may generally6 elect to regard the contract as rescinded7.

In these circumstances the representee may invoke the aid of the court, which may confirm by declaration his entitlement so to regard the contract,