Misrepresentation of what facts will result in a voided contract

• A. Material
• B. Immaterial
• C. Minor
• D. Insignificant

Answer: (A)

Misrepresentation that involves a material fact can void or void a contract because it goes to the heart of what induced the agreement. A misrepresentation is a false statement of fact that leads one party to enter a contract. If the fact is material, meaning it would influence a reasonable person’s decision (or did influence the decision), the harmed party can void the contract or rescind it. In contrast, misrepresenting something immaterial, minor, or insignificant generally wouldn’t give the harmed party the right to cancel the contract, since it wouldn’t have affected the decision to enter into the agreement. Therefore, misrepresentation of material facts will result in a voided (or voidable) contract.