Multiple choice

Fact: S intending to deceive Y, falsely represents that 500 maunds of indigo are made annually at x`s factory and thereby induces Y to buy the factory. Issue: Is it a valid contract?

  1. It is a valid contract.

  2. It is a contract voidable at the option of Y because he has been falsely misrepresentated

  3. It is void abinitio
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Fraudulent misrepresentation makes a contract voidable (not void ab initio) at the option of the deceived party. S's false statement about indigo production induced Y to buy. Y can choose to rescind (voidable) but contract was valid until Y exercises this option. Void ab initio would mean it never existed, which is incorrect for misrepresentation.

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