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Business Studies

Important Laws

Where the con...

Question

Where the consent of a party is obtained by misrepresentation, the contract is _______________.

A

valid

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B

void

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C

voidable

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D

illegal

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Solution

The correct option is B voidable
Misrepresentation has been defined under Section 18 of the Indian Contract Act, 1872 as a representation made by a person in order to induce another person to enter into contract, believing the representation to be true. However, the statement is not true and causes loss to the other party induced to enter into the contract. Section 19 clearly states that any contract induced by misrepresentation is voidable at the option of the party suffering the loss.

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Similar questions

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

R s . 2000000

R s . 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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