ABSTRACT
As a general rule, a party must not make any false and misleading statements to the other party thereby inducing him to enter into the contract. Thus, although there is no general duty to disclose material facts, ‘a single word or ... a nod or a wink, or a shake of the head or a smile’ may amount to a misrepresentation of fact allowing for the rescission (avoidance or setting aside) of the contract and the payment of damages. Where such is the case, consent is said to be vitiated and agreement not to be ‘genuine’ – in many cases the value of the contract’s subject-matter being significantly less than what it has been represented to be.
