Final answer:
A defective contract is legally unenforceable due to a flaw or error in its formation. Fraud involves deliberate deception, while misrepresentation refers to untrue statements made without intent to deceive.
Step-by-step explanation:
A defective contract is one that is legally unenforceable due to a flaw or error in its formation. This could be due to a mistake, misrepresentation, fraud, duress, undue influence, or incapacity of one or both parties involved. In a defective contract, one or more essential elements required for a valid contract are missing, resulting in its invalidity.
The difference between fraud and misrepresentation lies in the intent of the party providing false information. Fraud involves deliberate deception with the aim of causing harm or gaining an unfair advantage, while misrepresentation involves untrue statements or actions made without the intent to deceive. Both fraud and misrepresentation can render a contract voidable, allowing the innocent party to seek remedies or cancel the contract.