Contracts that have been proven to involve fraud are classified as?

When contracts involve fraud, they are classified as voidable. This means that the party who was misled—typically the one who did not engage in the fraudulent actions—has the right to either affirm the contract or void it. Fraud undermines trust and the fundamental principles of contract law, which rely on the fair and honest intentions of all parties involved.

In the case of a voidable contract, the deceived party has the option to rescind (cancel) the contract if they choose to do so. The presence of fraud makes the contract potentially enforceable but gives the victim of the fraud leverage to avoid obligations they were misled into assuming.

Understanding the distinction between void and voidable contracts is crucial. A void contract is one that is not legally valid from the outset, meaning it cannot be enforceable by either party. In contrast, a voidable contract is valid until one party takes action to void it. This classification is especially relevant in scenarios involving misrepresentation or fraud, where the aggrieved party has the power to decide how to proceed.

The classification as illegal pertains to contracts that involve activities that are against the law from the beginning, rendering them unenforceable. However, in the case of fraud, although the contract may be