Multiple choice

Assertion (A): X relying on misrepresentation in a prospectus agrees to purchase, but later, avoids the purchase. Reason (R): A contract entered into by a person can be avoided at any time.

  1. Both (A) and (R) are true and (R) is the correct explanation of (A).

  2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When consent to a contract is obtained by misrepresentation, such a contract is voidable at the option of the party whose consent was so obtained. A contract entered into by a person can be avoided within a reasonable time.

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