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Y’s fraud induced X to enter a contract. X rightfully rescinds the contract and proves damage caused by…

Fraud that induces consent generally makes the contract voidable at the option of the party misled under section 19. If that party rightfully rescinds, section 75 allows…

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Y’s fraud induced X to enter a contract. X rightfully rescinds the contract and proves damage caused by its non-fulfilment. What relief does section 75 of the Indian Contract Act, 1872 provide?

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Answer and explanation

Correct answer A

Fraud that induces consent generally makes the contract voidable at the option of the party misled under section 19. If that party rightfully rescinds, section 75 allows compensation for damage sustained through non-fulfilment. The loss and its connection to non-fulfilment must be established.

Option feedback

Option A

Section 75 allows compensation for damage sustained through non-fulfilment after rightful rescission.

Option B

The statute expressly permits compensation where the stated damage is proved.

Option C

Section 75 operates after rightful rescission. Affirming the contract is not a prerequisite.

Option D

The statute compensates damage sustained through non-fulfilment. It does not award the contract price automatically.

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