If one party attempts to perpetrate fraud on the other, this would be considered what type of defect?

The correct answer pertains to defects in mutual assent, which is the foundation of a valid contract in real estate transactions. When one party attempts to perpetrate fraud, they disrupt the agreed-upon terms and conditions that both parties have to assent to for a contract to be valid. This defect means that true consent was never achieved, as the fraudulent actions misled the other party, preventing a genuine meeting of the minds.

In contract law, mutual assent refers to the agreement between parties regarding the terms of the contract. If one party fraudulently represents information or conceals material facts, it undermines that agreement. This scenario highlights that the essence of the contract—actual understanding and acceptance of terms—is compromised. Therefore, the defect is not just about the individual misrepresentation itself, but rather about how it affects the overall agreement between the parties involved.

Understanding this concept is crucial in real estate transactions, as it illustrates the significance of honesty and transparency in the dealings between parties. Fraud has serious implications for enforceability and may lead to the contract being voidable.