A representee1 who has been induced2 by misrepresentation, whether fraudulent or innocent3, to enter into a contract or other binding transaction with the representor4, has, on discovery of the real facts, in the first instance, a right of election only. He may either affirm or disaffirm the contract or transaction, and, if he disaffirms it, give notice to the representor and demand from him a complete restoration of the status quo. In the event of his demand not being complied with he may, subject to certain conditions5
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