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[Misrepresentation Act] Can someone see if I understood this legislation correctly?

It states:

Removal of certain bars to rescission for innocent misrep
Where a person has entered into a contract after misrep has been made to him and
a) the misrep has become a term of contract; or
b) the contract has been performed;
or both, then, if otherwise he would be entitled to rescind the contract without alleging fraud, he shall be so entitled, subject to the provision of this Act notwithstanding the matters mentioned in paragraph (a) and (b) of this section.

My problem is with the words "if otherwise".

Am I correct in saying this then:
"... or both, then, if before he had not been entitled to rescind the contract without alleging fraud, he shall be so entitled now, but subject to provision..."?

If I am correct, why were we not entitled to rescind contract for innocent misrepresentation unless there is fraud?
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