Question

False information was given to induce a person to enter into a contract. Which of the following legal effects BEST describes this contract?

A » Valid and enforceable
B » Void
C » Voidable by the misrepresented party
D » Voidable by either party

Answer 1

False information given to induce a person to enter into a contract has the legal effect of being voidable by the misrepresented party.

Step-by-step explanation:

When false information is given to induce a person to enter into a contract, it is considered a case of fraudulent misrepresentation. In this situation, the legal effect on the contract is that it can be voidable by the misrepresented party. This means that the party who was deceived by the false information has the option to either affirm the contract or choose to rescind it.