What remedies are available for misrepresentation, and what is the effect of rescission?

• A. Rescission and/or damages; rescission is equitable and aims to restore parties to pre-contract position
• B. Only damages; rescission is never allowed
• C. Only specific performance; rescission is not allowed
• D. No remedies after completion

Answer: (A)

Misrepresentation allows you to undo the contract or to claim compensation. The remedies are rescission and damages. Rescission is an equitable remedy that cancels the contract from the outset and requires the parties to return what they exchanged, so they are put back in the position they were in before entering the contract. Its effect is to unwind the deal, though this can be blocked by affirming the contract, impossibility of restoration, or third‑party interests. Damages may also be awarded to compensate for losses caused by the misrepresentation, and you can seek damages in addition to rescission or, in some cases, in lieu of rescission. So the best description is that remedies include rescission and/or damages, with rescission aiming to restore the pre‑contract position.