• 1 Marks

BCL – L1 – SA – Q55 – Contract Law

False statement about fraud or misrepresentation in contracts.

Which of the following statement is false?

A   A contract is not voidable if fraud or misrepresentation does not induce the other party to enter a contract.

B   A party cannot complain of fraudulent silence or misrepresentation if he had the means of discovering the truth with ordinary            means.

C   In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract.

D   A party who affirms the contract, can also change his option afterwards if he so decides.

D

Explanation:
The correct answer is D because, in contract law, once a party affirms a contract after discovering fraud or misrepresentation, they cannot later rescind it, as affirmation waives the right to rescind. Options A, B, and C are true: A reflects that inducement is necessary for voidability, B aligns with the duty to exercise due diligence, and C correctly states the options of rescission or affirmation.

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