Contracts
An Alaska real estate contract that was fraudulently induced is:
AVoid from the beginning
BVoidable at the option of the defrauded party✓ Correct
CValid and binding on both parties
DOnly voidable if the fraud was material
Explanation
A contract induced by fraud (a knowing misrepresentation of a material fact) is voidable at the option of the defrauded party. The innocent party may choose to affirm the contract (and sue for damages) or rescind it (returning both parties to their prior positions).
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