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 constitute misrepresentation the statement must be false. If substantially true, there is no misrepresentation.1 Thus where an insured represented that he had not been rejected by any life insurance company, which was true, no misrepresentation existed, though he had been rejected by a beneficial association.2 A statement which is true according to the insured's understanding of the question, which understanding is a possible and reasonable construction thereof is not to be regarded as false; though, as the insurer intended the question, it is false.3 If the construction of such question is doubtful, it must be resolved against the insurer.4 A question as to "other insurance" in an application for life insurance means life insurance; and an answer "No" is not false, even if the insured has accident insurance.5. A statement as to the salary paid to an employe which is substantially true is not a misrepresentation, although such statement does not disclose that part of his compensation is in the use of apartments and part in commissions.6 An innocent misrepresentation to the effect that a certain title is good is not operative if all material defects have been removed when the vendor seeks to enforce the contract.7