Multiple choice

A fraudulently informs B that A`s estate is free from incumbrance. B thereupon buys the estate. The estate is subject to mortgage. Now

  1. B may avoid the contract

  2. B may insist upon its performance

  3. B may get the mortgage debt redeemed

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a party fraudulently misrepresents a material fact (like an encumbrance), the defrauded party has multiple remedies: avoiding (rescinding) the contract, insisting on performance with compensation, or having the defect rectified (mortgage redemption). All these remedies are available under contract law for fraud.

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