Denial of the Right to Rescind a Contract Based on he Finding of Essay - 1

Denial of the Right to Rescind a Contract Based on he Finding of Misrepresented Facts - Essay Example A misled party is normally allowed to rescind for justifiable reasons, for example, a misrepresentation. Misrepresentation here refers to a false statement of fact made by one of the contract partners to the other and in effect, it induced the second party to enter into the contact. It, therefore, stands that the representee was cheated into it (Collins, 2004). The remedy to misrepresentations normally comes in terms of payment for damages or refund of money offered by the represented, the person who has been cheated. However, under some circumstances, a court cannot allow a party to rescind on the realization of misrepresented facts which induced them to enter into the contract. An example of business-law matter which can lead to denial of rescission is the realization of misrepresentation involving the sale of goods, after the lapse of reasonable time. Atiyah (1994) states that in business, a buyer accepts and receives goods in the performance of a contract. According to the contract law, a represented cannot be given a chance to rescind from a contract if they discover a misrepresentation yet they do not take the necessary steps to avoid such a contract within a reasonable time (Cartwright, 2007). The time limit is given to represent to make such steps normally varies from one type of misrepresentation to another. For example, if it is a fraudulent misrepresentation, the representee has until when the misrepresentation should have been discovered. International galleries also claimed that the item (a painting) was truly a Constable (Leaf v International Galleries [1950] 2 KB 86). In this case, the term of the contract was the painter’s name, that is, John Constable and a breach of this allowed the rejection of the painting.   Leaf paid  £85 for the item and after five years he wanted to auction it. To his surprise, he was told the item was not a constable as earlier stated by International Galleries. Leaf claimed a rescission of the contract so as to get a refund of his money but was denied.