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  • Ram with an intention to deceive Sham into buying his sugar factory, falsely stated that his factory is capable o

Ram with an intention to deceive Sham into buying his sugar factory, falsely stated that his factory is capable of producing 2,000 kg of sugar per day. However, in reality, the factory only has a production capacity of 500 kg/ day. Rahul gets induced and agrees to buy the factory. Is it a valid contract?

Option: 1

The contract is valid one and Sham must buy the factory.


Option: 2

The contract is voidable at the option of Sham due to misrepresentation by Ram.


Option: 3

The contract is void due to false claims made by Ram in realtion to his factory.

 


Option: 4

The price of the contract could be reduced with the reduced production capacity of the factory.


Answers (1)

best_answer

In this situation, Ram has misrepresented the production capacity of the sugar factory to induce Sham into buying the factory. Thus, the contract is voidable at the option of Sham due to misrepresentation of Ram.

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Gaurav

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