Alice makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Alice now thinks that the contract is not fair to her. This contract is voidable at Alice's option.

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Quizplus · Accepted Answer

A contract induced by fraud (material misrepresentation of fact) is voidable at the option of the innocent party, not the party who made the misrepresentation. Alice cannot void the contract simply because she thinks it is not fair to her.

Alice Makes a Material Misrepresentation of Fact to Betty, and Based