Which misrepresentation allows a party to seek rescission without damages?

In the context of misrepresentation, innocent misrepresentation allows a party to seek rescission without the possibility of claiming damages. This type of misrepresentation occurs when a false statement is made without intent to deceive and is based on a reasonable belief that the information is true. The party making the statement genuinely believes the representation to be accurate and thus lacks any fraudulent intention.

When a party seeks rescission due to innocent misrepresentation, they are aiming to restore the parties to their original positions before the contract was formed, recognizing that the misrepresentation influenced their decision to enter into the agreement. However, they do not have the right to claim damages because there was no deceitful intent involved in the misrepresentation. This sets innocent misrepresentation apart from negligent and fraudulent misrepresentation, where the parties may be entitled to both rescission and damages, especially if they can prove that the misrepresentation caused financial harm due to negligence or intentional deceit.

Understanding these distinctions is crucial in hospitality law and contract law as it informs how parties can assert their rights and remedies available in the event of misrepresentation.