Question

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?

• A. Contract is void ab initio.
• B. Contract is voidable at the option of A.
• C. Contract is voidable at the option of B.
• D. Contract is voidable at the option of A & B.

Answer 1

The Correct Option is C

Since A’s false representation induced B to enter into the contract, B can choose to void the contract.Thus, the contract is voidable at B’s option due to misrepresentation.