What characterizes a fraudulent agreement?

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A fraudulent agreement is primarily characterized by its foundation on deceit or dishonesty. In legal terms, fraud occurs when one party induces another to enter into a contract based on false representations or misleading information. This fundamental aspect undermines the integrity of the agreement itself, making it voidable at the option of the deceived party.

While mutual consent between parties is essential for forming any valid contract, in the case of a fraudulent agreement, that consent is obtained through deceit. Therefore, even though two parties might agree to the terms, the nature of the agreement changes due to the presence of fraud.

Guaranteed financial benefits and official notarization do not inherently relate to the concept of fraud. An agreement might offer financial benefits while still being genuine and lawful, and official notarization is merely a formal procedure to authenticate documents, which does not address the issue of dishonesty or deceit inherent in a fraudulent agreement. Thus, the defining characteristic of a fraudulent agreement is its basis in deceit or dishonesty.

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