Explanation:
When the consent of a party is obtained by misrepresentation, the contract is considered voidable. This means that the party whose consent was obtained by misrepresentation has the option to either affirm the contract or rescind it.

Definition of Misrepresentation:
Misrepresentation refers to a false statement of fact made by one party to another party, which induces the other party to enter into a contract. It can be either an innocent misrepresentation, where the party making the statement believes it to be true, or a fraudulent misrepresentation, where the party making the statement knows it to be false.

Voidable Contract:
A voidable contract is a valid contract that can be either affirmed or rescinded by the party whose consent was obtained by misrepresentation. This means that the party has the option to either proceed with the contract as if the misrepresentation did not occur or to cancel the contract and seek restitution.

Option to Affirm or Rescind:
When a party's consent is obtained by misrepresentation, they have the option to affirm the contract. This means that they can choose to continue with the contract and be bound by its terms. By affirming the contract, the party waives their right to rescind the contract based on the misrepresentation.

On the other hand, the party also has the option to rescind the contract. Rescinding the contract means that the party chooses to cancel the contract and be released from any obligations under it. In this case, the party may also seek restitution, which is the return of any property or money that was given under the contract.

Legal Consequences:
If a party chooses to rescind the contract, the contract is considered voidable. This means that it is legally valid until it is rescinded. Once the contract is rescinded, it is considered void ab initio, which means that it is treated as if it never existed. The parties are restored to their original positions before the contract was entered into.

It is important to note that a contract obtained by fraudulent misrepresentation may also be voidable or void, depending on the circumstances and the jurisdiction. In general, however, when the consent of a party is obtained by misrepresentation, the contract is considered voidable.