Misrepresentation and fraud in contracting are examples of contracts that are what?

Misrepresentation and fraud in contracting are examples of contracts that are what?

• A. Enforceable
• B. Void
• C. Unenforceable due to public policy
• D. Not subject to Statute of Frauds

Answer: (C)

Misrepresentation and fraud undermine how a contract is formed because they involve deceit that leads a party to agree under false pretenses. Public policy aims to prevent people from being bound by agreements entered into through deceit, so courts treat contracts formed this way as unenforceable. The injured party typically can rescind the contract and may seek damages, since enforcing a deceit-based agreement would reward dishonest conduct. This is why those contracts are categorized as unenforceable due to public policy.

Misrepresentation and fraud undermine how a contract is formed because they involve deceit that leads a party to agree under false pretenses. Public policy aims to prevent people from being bound by agreements entered into through deceit, so courts treat contracts formed this way as unenforceable. The injured party typically can rescind the contract and may seek damages, since enforcing a deceit-based agreement would reward dishonest conduct. This is why those contracts are categorized as unenforceable due to public policy.