Site navigation

A enters into a contract with B. In this, B is guilty of fraud. A can now

Where B’s fraud induced A’s consent, section 19 permits A to avoid the contract. Rightful rescission can be accompanied by compensation for legally recoverable loss,…

Choose your answer

A enters into a contract with B. In this, B is guilty of fraud. A can now

Select one answer
Answer and explanation

Correct answer C

Where B’s fraud induced A’s consent, section 19 permits A to avoid the contract. Rightful rescission can be accompanied by compensation for legally recoverable loss, including the relevant section 75 consequences or a properly proved deceit claim. Rescission therefore does not invariably exclude compensation. Recovery still requires the applicable basis and loss; the statement does not award a fixed sum automatically.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic