Can a contract be voided due to fraud or misrepresentation?

A contract can indeed be voided due to fraud or misrepresentation because these factors undermine the very essence of a mutual agreement. A valid contract requires that all parties enter into the agreement willingly and based on accurate disclosures. When one party intentionally deceives another, or provides false information, it disrupts the trust and commitment fundamental to contractual obligations.

In legal terms, fraud refers to an intentional act of deception, while misrepresentation can encompass both intentional and unintentional false statements that induce someone to enter into a contract. When a contract is based on fraudulent information or misrepresentations, it fails to meet the requirements of mutual assent and can be rescinded by the aggrieved party. This principle serves to protect individuals from being forced to honor agreements formed under dishonest circumstances.

Other options do not capture the full scope of legal implications regarding fraudulent contracts. For instance, stating that a contract must always be honored disregards the legal basis for voiding agreements stemming from deceitful practices. Similarly, the notion that written statements are necessary or that negligence alone suffices for a contract to be voided does not align with the established legal principles surrounding fraud and misrepresentation.