Multiple choice

X enters into a contract with Y, for which Y is guilty of fraud. X can

  1. set aside the contract, but cannot recover damages

  2. only recover damages

  3. set aside the contract and can recover damages also

  4. ask for a specific performance

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option (1) is incorrect: X can set aside the contract and can recover damages also. Option (2) is incorrect: X can set aside the contract and can recover damages also. Option (3) is correct: X has both remedies, i.e. he can repudiate the contract and can recover damages from Y.

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