What is the primary consequence of misrepresentation in a contract?

The primary consequence of misrepresentation in a contract is that it invalidates the consent of the parties. Misrepresentation occurs when one party provides false information that induces another party to enter into the contract. Since consent is fundamental to the formation of a valid contract, if that consent is obtained through misrepresentation, the innocent party did not genuinely agree to the terms as represented. This means that the contract may be voidable, allowing the misled party to rescind the agreement and seek remedies, such as damages for any loss incurred.

In contrast, creating a binding agreement or ensuring that the contract is fulfilled does not apply, as misrepresentation undermines the validity of the consent needed to form such an agreement. Allowing for changes in the contract terms is also not a direct consequence of misrepresentation; rather, it addresses situations where all parties agree to modify the agreement. Therefore, the correct answer accurately captures the significance of misrepresentation in contract law, focusing on how it affects the parties' consent.