What is the impact of fraud on a contract in Texas?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

Fraud can significantly impact the enforceability of a contract under Texas law by rendering it voidable at the option of the deceived party. When one party engages in fraudulent behavior, such as misrepresentation or deceit concerning a material fact, the other party has the right to choose whether to affirm the contract or void it. This principle is rooted in the idea that parties should be able to rely on truthful representations when entering into an agreement.

If a contract is found to be the result of fraud, the deceived party has the option not only to rescind the contract but also to seek damages that may have resulted from the fraud. This provides a remedy aimed at protecting the integrity of contractual relationships and ensuring that parties do not benefit from deceptive practices.

The assertion that a contract is automatically void due to fraud is inaccurate, as contracts typically are only voidable rather than void. For a written contract, even if it is drafted and signed, the presence of fraud can impact its enforceability. Finally, while parties may choose to renegotiate terms of a contract, fraud does not inherently provide a basis for renegotiation; rather, it gives the deceived party the right to void or affirm the original contract. Thus, the primary impact of fraud in

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