BCL – L1 – SA – Q38 – Contract Law

An agreement that is caused by fraud, misrepresentation & coercion is

A. Voidable

B. Partially Void

C. Valid

D. All of these

E. None of these

A

Explanation:

A contract induced by fraud, misrepresentation, or coercion is voidable at the option of the aggrieved party. This means the party affected by the fraud, misrepresentation, or coercion can choose to rescind the contract or affirm it. A voidable contract is valid and enforceable until the aggrieved party exercises their right to cancel it. Option A (voidable) is correct. Option B (partially void) is incorrect, as these factors affect the entire contract. Option C (valid) is incorrect, as the contract is not unconditionally valid. Option D and E are incorrect, as only “voidable” applies. The answer “A” aligns with contract law principles.