Contracts
What is the effect of 'fraud in the inducement' on a contract?
AThe contract is void from the start
BThe contract is voidable by the defrauded party✓ Correct
CThe contract is fully enforceable despite the fraud
DOnly the fraudulent clause is unenforceable
Explanation
Fraud in the inducement means one party was deceived into entering the contract. This makes the contract voidable (not void) — the defrauded party may choose to rescind or affirm the contract. Damages may also be sought.
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