Explain in simpler terms Third Party Rights The right to rescind is lost if it would affect the rights of third parties This is a major limitation where goods obtained on the basis of a fraudulent misrepresentation have been sold on to an innocent third party. As the effect of misrepresentation is to render a contract voidable, not void, it means that a person acquiring goods under such a contract may pass good title at any time before rescission to an innocent third party purchaser who has no notice of the misrepresentation