This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
To render a contract invalid by reason of misrepresentation, such misrepresentation must be substantially false. A release is not avoided by a statement that the other passengers had signed such release, if, in fact, they had signed similar releases.1 If no positive misstatement is made, failure to state the terms completely does not make the contract invalid.2
1 Zunker v. Kuehn, US Wis. 421, 88 N. W. 605.
2 Standard Mfg. Co. v. Slot, 121 Wis. 14, 105 Am. St. Rep. 1016, 98 N. W. 923.
3 Freeman v. Croom, 172 N. Car. 524, 90 S. E. 523.
1 McNamara v. Boston Elevated Ry. Co., 197 Mass. 383, 83 N. E. 878
2 Weddington v. Piedmont Fire Ins. Co., 141 N. Car. 234, 54 S. E. 271.
On the other hand, the offer of a written contract which purports to be a statement of the terms of a prior contract is equivalent to a representation that the terms of the written contract are the same as those of the prior contract. The lessee prepared a lease and delivered it to a third person to hold in order that the lessor might execute it. The lessor insisted on adding some additional provisions to such lease before executing it. The person in whose custody the lease was, called the attention of the lessor to one of such additions, but he" forgot to speak of the other addition. It was held that the minds of the parties did not meet and that such lease must be held a nullity.4 If a policy of insurance by mistake describes the property as located in a building other than that in which the applicant has described it as being located, it is said that the applicant may show such mistake and recover upon the actual contract without the necessity of a decree of reformation in equity.5