A fraudulently informs B that A 39 s estate is free from encumbrance B thereupon buys the estate The...........

Indian Contract Act (ICA)1872 Valid and Void Contracts

A fraudulently informs B that A's estate is free from encumbrance. B thereupon buys the estate. The estate is subject to a mortgage. In this case –

B may avoid the contract

B may either avoid the contract or may insist on it’s being carried out and the mortgage-debt redeemed

B may continue with the contract with A

The contract is void and hence unenforceable

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Explanation:

Illustration (c) to Section 19 of the Indian Contract Act –
19. Void-ability of agreements without free consent.
(c) A fraudulently informs B that A's estate is free from encumbrance. B thereupon buys the estate. The estate is subject to a mortgage. B may either avoid the contract, or may insist on its being carried out and the mortgage-debt redeemed.