Question
Legal Studies Question on Laws of Contract
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
Contract is voidable at the option of B.
Explanation
Solution
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.