CSEET · Business Laws and Management · Elements of Law of Contracts
C, having learnt of B's death, prevents the news from reaching A, who is entitled to succeed to B's estate, and thereby induces A to sell C his interest. What is the effect?
The sale is voidable at A's option. C actively prevented A from learning of B's death, which caused A's consent, and under section 19 a contract whose consent is caused by fraud is voidable at the option of the deceived party.
- AThe sale is valid because C made no false statement
- BThe sale is void ab initio
- CThe sale is voidable at the option of ACorrect
- DThe sale is voidable at the option of C
Explanation
Illustration (e) to section 19 gives this case: concealment that causes consent amounts to fraud, and the sale is voidable at the option of A, the party whose consent was so caused. It is not void, and C cannot avoid it.
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