What happens after a representee decides to rescind a contract?
A) The whole transaction will be set aside and both parties restored to their original positions.
B) If the misrepresentation was innocent, the representee is free from his future obligations under the contract but must fulfil pre-existing ones.
C) The representee can set aside parts of the transaction which he agreed to as a result of the misrepresentation and also affirm other obligations under the contract.
D) None of the options provided are correct.

Question

Quizplus · Accepted Answer

When a representee decides to rescind a contract due to misrepresentation, the contract is set aside, and both parties are restored to their original positions as if the contract had never been made. This process is aimed at undoing the effects of the contract to prevent unjust enrichment of either party.

What Happens After a Representee Decides to Rescind a Contract