nA contract entered into based on fraud or a material misrepresentation of fact may be avoided.
nExample: A seller of a used car represents to
the prospective buyer
that the car has been owned by one previous owner and has been driven only 15,000 miles, a fact disclosed by the carís odometer. It turns out that the car has had three previous owners and had been driven
over 75,000 miles but
the seller tampered with the odometer to cause it to be turned back to 15,000.