A, by committing FRAUD, induces B to enter into a contract. On discovering the fraud, B:

Explanation: Under Section 19 of the Indian Contract Act, a contract caused by fraud (or misrepresentation) is VOIDABLE at the option of the party whose consent was so caused. B, the deceived party, may rescind the contract or, where rescission is no longer possible, may insist on being put in the position he would have occupied had there been no fraud. The option belongs to the innocent party alone; the fraudster cannot rely on the voidability. Where both parties are in pari delicto or there is delay, equity may refuse rescission. This is a classic application of the free-consent rules.