A, by fraud, induces B to enter into a contract. B later discovers the fraud but continues to perform under the contract. Under the Indian Contract Act, what is the legal position? 

Under Section 19 of the Indian Contract Act, a contract induced by fraud or misrepresentation is voidable at the option of the party whose consent was so caused. However, Section 19 read with Section 19-A also provides that the aggrieved party loses this right if, after becoming aware of the fraud, he acquiesces in the contract-such as by continuing performance, accepting benefits, or by lapse of reasonable time without exercising the option to rescind. This principle flows from the doctrine that equity aids the vigilant, not the indolent. Once the defrauded party, with full knowledge, elects to affirm the contract, the right to rescind is extinguished.