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CSEET · Business Laws and Management · Elements of Law of Contracts

A misrepresents to B that a factory makes 500 maunds of indigo annually. B examines the factory accounts, which show only 400 maunds, and then buys the factory. Under section 19, the contract is:

The contract is not voidable on account of the misrepresentation. B had the means of discovering the truth with ordinary diligence and in fact examined accounts showing only 400 maunds, so the exception to section 19 applies.

  1. AVoidable, because a misrepresentation was made
  2. BVoid, because B made a mistake
  3. CNot voidable on account of the misrepresentation, as B had means of discovering the truth with ordinary diligenceCorrect
  4. DVoidable only if A also made a fraudulent promise

Explanation

The Exception to section 19 says consent caused by misrepresentation does not make the contract voidable if the party had the means of discovering the truth with ordinary diligence. B examined the accounts, which revealed the truth. Option A ignores this exception.

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