law: Indian Contract Act, 1872 
  19. Voidability of agreements without
  
  free consent
  When consent to an agreement is caused by coercion, 4A[***]
  
  fraud or misrepresentation, the agreement is a contract voidable at the option
  
  of the party whose consent was so caused.
  A party to a contract, whose consent was caused by fraud or
  
  misrepresentation, may, if he thinks fit, insist that the contract shall be
  
  performed, and that he shall be put on the position in which he would have been
  
  if the representations made had been true.
  Exception :  If such consent was caused by
  
  misrepresentation or by silence, fraudulent within the meaning of section 17,
  
  the contract, nevertheless, is not voidable, if the party whose consent was so
  
  caused had the means of discovering the truth with ordinary diligence.
  Explanation:  A fraud or misrepresentation which did not
  
  cause the consent to a contract of the party on whom such fraud was practiced,
  
  or to whom such misrepresentation was made, does not render a contract
  
  voidable.
   Illustrations 
  (a) A, intending to deceive B, falsely represents that five
  
  hundred maunds of indigo are made annually at A's factory, and thereby induces
  
  B to buy the factory. The contract is voidable at the option of B.
  (b) A, by a misrepresentation, leads B erroneously to believe
  
  that five hundred mounds of indigo are made annually at A's factory. B examines
  
  the accounts of the factory, which show that only four hundred maunds of indigo
  
  have been made. After this B buys the factory. The contract is not voidable on
  
  account of A's misrepresentation.
  (c) A fraudulently informs B that A's estate is free from
  
  encumbrance. B thereupon buys the estate. The estate is subject to a mortgage.
  
  B may either avoid the contract, or may insist on its being carried out and the
  
  mortgage-debt redeemed.
  (d) B, having discovered a vein of ore on the estate of A,
  
  adopts means to conceal, and does conceal the existence of the ore from A.
  
  Though A's ignorance B is enabled to buy the estate at an undervalue. The
  
  contract is voidable at the option of A.
  (e) A is entitled to succeed to an estate at the death of B, B
  
  dies; C having received intelligence of B's death, prevents the intelligence
  
  reaching A, and thus induces A to sell him his interest in the estate. The sale
  
  is voidable at the option of A.