Multiple choice

A intending to deceive B falsely represents that 750 tons of sugar is produced per annum at the factory of A and hereby induces B to buy the factory. The contract is avoidable at the option of

  1. B

  2. A

  3. congruence of A and B

  4. either party cannot avoid the contract
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a party fraudulently misrepresents a material fact to induce another into a contract, the defrauded party (B) has the option to avoid the contract. Fraud makes a contract voidable at the option of the innocent party. A, having deceived B, cannot then claim protection from the contract's avoidance.

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