S 5 B – Misrepresentation A person who relies reasonably on such an assertion and suffers loss may recover from the wrongdoer who the assertion is made fraudulently or negligently. However, when a person makes an assertion neither fraudulently or negligently yet the assertion is false nevertheless, then the victim will not have a claim in tort against the asserter of the statement. Material – could reasonably be expected to influence the decision of a party to enter into a contract If a party who has suffered because of misrepresentation, they must pursue action within a reasonable period time or they will lose the right to rescind. If they do not alert the other party and renounce the agreement promptly they also lose the right to rescind. If they have suffered out-of-pocket losses, they may be entitled to indemnity or compensation as a supplement to recission. In land transactions the right to recission for innocent misrepresentation is lost once title to the property is transferred and transaction completed for two reasons:
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