Facts
- The claimant purchased some land after being reassured that the land was free from underground piping
- A pipe was found – an old sewer
Issue
- Could the contract be rescinded (claimed)?
Decision
- No, damages under s 2(2) of the Misrepresentation Act awarded instead
Reasoning
- Ask whether rescission is appropriate, look at losses incurred on both sides due to the misrepresentation, financially adjust under s 2(2)
- The land value had decreased substantially, so it would be unjust to rescind for a minor issue where rescission would cost the vendor disproportionately more than the rectification of the issue
