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Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer. Factual Situation: The director of a company issued a prospectus containing false representation, on the faith of which Z agreed to buy some shares from the company. Issue: Can the Z avoid the contract? Decision:

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Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer. Factual Situation: The director of a company issued a prospectus containing false representation, on the faith of which Z agreed to buy some shares from the company. Issue: Can the Z avoid the contract? Decision:





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