Which of the following statement is correct if A, intending to deceive B, falsely represents that five hundred maunds of indigo are made annually at A's factory, and thereby induces B to buy the factory?
Explanation & Strategy
Click any section to expand · only one open at a time
When consent is obtained by fraud (A's false representation), the contract becomes voidable at the option of the innocent party (B, who was deceived). Not void ab initio — B can choose to affirm or avoid it.
The text reads: Section 19: When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.