ABSTRACT
The right to rescission of the contract exists independently of any statute. There are bars, any one of which may prevent rescission being available. The three most significant are: (a) where restitution is impossible, for example, where the buyer has consumed the goods; (b) where the buyer has delayed for more than a reasonable length of time before rescinding the contract; and (c) where a third party acting in good faith has already bought the goods (see s 23 of the Sale of Goods Act 1979, above at p 19). In the case of a fraudulent representation, the reasonable length of time does not start until the buyer has become aware of the misrepresentation. In the case, however, of innocent misrepresentation (negligent or not), time begins to run when the contract is made (Leaf v International Galleries (1950)). By virtue of s 2(2) of the Misrepresentation Act 1967, the court has the discretion to refuse to grant rescission and to award damages instead. Section 2(2) does not apply where the misrepresentation was made fraudulently.
