ABSTRACT
There can be no rescission if third parties have acquired rights in the subject matter of the contract. See Phillips v Brooks (1919) and Lewis v Averay (1972)—Chapter 6. Misrepresentation
Representations and terms of a contract Material statements made during negotiations leading to a contract may be either: terms of the contract. If these are untrue, the untruth
constitutes a breach of contract; or statements which helped to induce the contract, that is,
‘mere representations’. If untrue-they are ‘misrepresentations’.
