🎴 Flashcard Mode
Contract Law Fundamentals
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A, intending to deceive B, falsely represents that five hundred tons of indigo is made annually at A's factory and thereby induces B to buy the factory. The contract is
AnswerClick to flip back
A
voidable at the option of B
💡 Explanation:
Option (1) is incorrect: It is not a void contract.
Option (2) is incorrect: It is voidable only at the option of B.
Option (3) is correct: If B doesn’t want to perform the contract, he can declare it to be void from the court.
Option (4) is incorrect: It is not an illegal contract.