RESCISSION FOR MISREPRESENTATION

Extract

IN Salt v Stratstone Specialist Ltd. (t/a Stratstone Cadillac Newcastle) [2015] EWCA Civ 745; [2015] C.T.L.C. 206, the Court of Appeal usefully emphasised that rescission is the primary remedy for misrepresentation (whether that misrepresentation be fraudulent, negligent, or innocent). The Court decided that the discretion to award damages in lieu of rescission under s. 2(2) of the Misrepresentation Act 1967 can only be exercised where the right to rescind still exists, which helpfully resolves an issue of some controversy. The Court of Appeal also held that rescission for misrepresentation is not barred just because the asset sold has dropped in value or been registered, and cast doubt on the notion that lapse of time can by itself bar rescission. The short but important decision in Salt v Stratstone Specialist Ltd. is welcome and full of interest.