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Byju's Answer
Standard XII
Business Studies
Important Laws
When the cons...
Question

When the consent of a party is obtained by fraud, the contract is ________.

A
valid
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B
voidable
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C
illegal
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D
void
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Solution

The correct option is B voidable
When the consent of a party is obtained by fraud, the contract is voidable reasons that can make a contract voidable include failure by one or both parties to disclose a material fact; a mistake, misrepresentation or fraud; undue influence or duress; one party's legal incapacity to enter a contract; one or more terms that are unconscionable ; or a breach of contract.


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Q. Where the consent of a party is obtained by misrepresentation, the contract is _______________.
Q. Where one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by _______________.
Q. Choose the correct answers from the following alternatives given
Where one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by _____________.
Q. Principle: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, on undue influence, or fraud, or misrepresentation, or mistake.
When consent to an agreement is caused by coercion, undue influence, fraud or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused. However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void.
Fact: 'X' threatens to gun down 'Y' if he ('Y') does not sell his property worth Rs.2000000 for Rs.100000 only. As a consequence, 'Y' agrees to sell it as demanded by 'X'.
Which of the following derivations is correct?
Q. Principle : An agreement without free consent can be enforced only at the option of the party whose consent was not free.
Facts : A obtains the consent of 'B' to enter into an agreement by putting a gun on the head of B's girl friend.
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