The buyer purchased an apartment complex based on fraudulent income statements. What is the status of the sales contract?

In this scenario, the correct status of the sales contract is that it is voidable. When a buyer enters into a contract based on fraudulent information, such as misleading income statements that misrepresent the financial performance of an apartment complex, they have the right to rescind the agreement.

A voidable contract is one that remains valid until one party decides to void it due to specific circumstances, such as fraud or misrepresentation. In this case, since the buyer relied on false income statements provided by the seller, the buyer can exercise the option to void the contract upon discovering the fraud.

Conversely, if a contract were deemed void, it would mean it was never legally enforceable to begin with. Option A would be incorrect because the contract does exist and can be acted upon unless voided by the buyer due to fraud. The contract isn't illegal (as in option C), since it was formed under an agreement, albeit under false pretenses. And it certainly isn’t valid (option D) in the sense that the buyer would not be bound to the terms if they choose to void the contract. Thus, the contract stands as voidable, allowing the buyer to respond to the fraudulent actions.