'A', intending to deceive 'B' falsely represents that five hundred tonnes of indigo are made annually at A's factory, and thereby induces 'B' to buy the factory. The contract is:-
Verified Answer
A. Void
B. Voidable at B's option
C. Voidable at A's option
D. Unlawful
Explanation:
When consent to an agreement is caused by fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused (Section 19 of the Indian Contract Act, 1872). Here, B's consent was induced by A's false representation, making it voidable at B's option.