PGLAW 2019 Panjab University Entrance Exam With Answers

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57.

When The Consent Of A Party To A Contract Has Been Obtained By Undue Influence, Fraud Or Misrepresentation, The Contract Is -

A: Illegal
B: Voidable
C: Void
D: Enforceable

The answer is: B

Explanation

When the consent of a party to a contract has been obtained by undue influence, fraud, or misrepresentation, the contract is considered to be voidable.

This means that the party whose consent was affected has the option to either enforce the contract or to rescind it. The affected party may choose to rescind the contract within a reasonable amount of time after discovering the fraud, undue influence, or misrepresentation.

A voidable contract is not automatically void, but it can be voided by the party who was affected by the wrongful act. If the affected party chooses to enforce the contract, then the contract remains valid and enforceable.

In contrast, if the contract is found to be void, then it is not legally enforceable from the beginning. Void contracts are considered as if they never existed and no legal obligations can arise from them.

Therefore, option B, "voidable," is the correct answer.