Document Fragment View
Fragment Information
Showing contexts for: a voidable contract in M/S Texco Marketing Pvt. Ltd. vs Tata Aig Generla Insurance Company Ltd on 9 November, 2022Matching Fragments
xxx xxx xxx
(i) An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract;
xxx xxx xxx
10.What agreements are contracts.- All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
xxx xxx xxx
19.Voidability of agreements without free consent.- When consent to an agreement is caused by coercion, [***] fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.
A party to contract, whose consent was caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position in which he would have been if the representations made had been true.
Exception.- If such consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, nevertheless, is not voidable, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence. Explanation.- A fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made, does not render a contract voidable.
Illustrations
xxx xxx xxx
(c) A fraudulently informs B that A’s estate is free from incumbrance. B thereupon buys the estate. The estate is subject to mortgage. B may either avoid the contract, or may insist on its being carried out and mortgage-debt redeemed,”
23.Section 2(i) of the Indian Contract Act, 1872 (hereinafter referred to as “the Contract Act”) defines a voidable contract. This definition clause extends the option to one side of the parties to the contract to declare it as voidable.