Question

Where consent is caused by fraud or misrepresentation, the contract is

• A. Unenforceable
• B. Void
• C. Voidable at the option of the aggrieved party
• D. Not affected in any manner

Hint:

Fraud or misrepresentation affects free consent, making contracts voidable, not void, allowing the aggrieved party to rescind.

Answer 1

The Correct Option is C

Under Sections 17 and 18 of the Indian Contract Act, 1872, a contract induced by fraud or misrepresentation is voidable at the option of the party whose consent was so caused. Thus, the correct answer is: \[ {\text{Voidable at the option of the aggrieved party}} \]