What type of agreements are void if they are based on deceit or dishonesty?

Agreements that are based on deceit or dishonesty are classified as fraudulent agreements, which makes the choice of the second option ideal. Fraud occurs when one party intentionally communicates false information or omits critical facts to deceive another party, leading them to agree to the terms based on misinformation.

In a legal context, such fraudulent agreements lack the essential element of genuine consent. When deceit is involved, the affected party's ability to provide true and informed consent is compromised, thus rendering the agreement void. The law recognizes this lack of freely given consent as sufficient reason to nullify any contractual obligations established under fraudulent conditions.

Other types of agreements mentioned, such as mutual agreements, legal agreements, and breach of contract agreements, don’t inherently involve deceit. Mutual agreements may involve two parties coming together in good faith, legal agreements are contracts that conform to the law, and breach of contract agreements pertain to instances where a party fails to fulfill their contractual obligations without any necessary link to deception. Consequently, these options do not apply in the context of agreements that are rendered void due to dishonesty or deceit.