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In Canada, contracts can be rescinded for innocent misrepresentation under the rules of equity. The cases are too numerous to mention, but Wurz v Devlin (1920) 52 DLR 414 (Saskatchewan CA) and Ennis v Klassen [1990] 4 WWR 609, 70 DLR (4th) 321 (Manitoba CA) provide good examples. As I understand it (although I've never investigated the issue and would be happy to be corrected), the requirement that the misrepresentation be substantial applies to fully executed sales of land. In that situation, it is too late to rescind unless the misrepresentation was either fraudulent or substantial: Shortt v MacLennan [1959] SCR 3, 16 DLR (2d) 161.

With best wishes,
Rob Chambers

From: Robert Stevens
Date: 3 April 2004 7:39:14 am GMT-07:00
Subject: Re: [RDG:] Undue Influence and Innocent Misrepresentations

I don't know what the Canadian cases are but Kennedy v Royal Mail of Panama is a decision of Blackburn J. It is concerned with the ability to set aside a contract at common law. At common law it was (and is) a requirement that the misrepresentation be 'substantial.' At common law, of course, the misrepresentation also had to be fraudulent.

In equity, the misrepresentation neither has to be substantial nor does it have to be fraudulent: Edgington v Fitzmaurice. Does Canada not possess the right to rescind for innocent misrepresentation in equity?