135. Misrepresentation is an innocent misstatement or nondisclosure of facts. It must be distinguished from

(a) Fraud, which is a false representation (or nondisclosure under such circumstances that it amounts to a misrepresentation) known to be false, or made in reckless ignorance as to its truth or falsity.

(b) Conditions and warranties, which are representations constituting terms of the contract.

Same - Effect

136. Mere misrepresentation has at law no effect on a contract, except in the case of contracts said to be uberrimę fidei, in which, from their nature, or from the particular circumstances, one party must rely on the other for his knowledge of the facts, and the other is bound to the utmost good faith. These are:

(a) Contracts of marine, fire, and life insurance.

(b) Contracts between persons occupying a confidential relation, as between attorney and client, principal and agent, guardian and ward, trustee and cestui que trust, etc.

(c) To a limited extent, contracts for the sale of land.

(d) In England, and probably with us, contracts with promoters of a corporation for the purchase of shares.

137. Where misrepresentation has any effect at all, it renders the contract voidable.

138. A material misrepresentation is ground for granting or refusing equitable relief.