Which of the following is a potential misrepresentation remedy, and when might rescission be refused?

• A. Specific performance; always available
• B. Damages only; rescission never available
• C. Rescission only; damages not available
• D. Rescission and/or damages; rescission may be refused if excessive delay or a third party has acquired an interest

Answer: (D)

Misrepresentation remedies include rescission and damages. Rescission cancels the contract and puts the parties back in the positions they were in before the agreement, but it isn’t always available. It can be refused if there’s been excessive delay, because of the doctrine of laches—the claimant waited too long to act and the delay makes rescission unfair or impractical. It can also be refused if a third party has acquired an interest in the subject matter, so restoring the original position would be impossible or unfair to the third party.

Damages are another remedy to compensate for losses caused by the misrepresentation, and they can be pursued even if rescission is not available. The combination of rescission and/or damages reflects the range of remedies available for misrepresentation, with rescission limited by delay or third‑party interests.