ABSTRACT
A party who has entered into a contract in reliance on a false statement of fact by the other party will have an action for misrepresentation. This is particularly useful in situations where the party has relied on statements made in the course of negotiations, but which were not incorporated as terms in the contract (see Chapter 6), although the fact that the statement has become a term does not necessarily preclude a party from bringing an action for misrepresentation. To be actionable as a misrepresentation, the statement must be one of existing or past fact which induces the affected party (the representee) to enter into the contract with the person who made the statement (the representor). The general remedy is that of rescission, that is, the contract becomes voidable, but damages may also be awarded.
