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

1.     Actionable Misrepresentation

(1)     Introduction to actionable misrepresentation

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