Facts
- The claimants acquired a company to make use of the directors. They then sought to rescind the contract on the basis of a misrepresentation made in the accounts of the company
Issue
- Could the contract be rescinded?
Decision
- No
Reasoning
- The misrepresentation had not played a ‘real and substantial’ part in inducing the claimants into entering the contract; the motive for entry was to acquire the directors only
