Law · Indian Contract Act
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R. Assertion A: A, the owner of a ship, by fraudulently representing her to be seaworthy, induces B, an underwriter, to insure the ship. Reason R: B can obtain cancellation of the policy, as it is a fraud on account of fraudulent misrepresentation under the Contract Act. In the light of the above statements, choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is false but R is true
- 2A is true but R is false
- 3Both A and R are true and R is NOT the correct explanation of A
- 4Both A and R are true and R is the correct explanation of A✓
Correct answer
Both A and R are true and R is the correct explanation of A
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