{"id":3966,"date":"2020-03-15T15:11:27","date_gmt":"2020-03-15T15:11:27","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3966"},"modified":"2020-03-15T15:11:27","modified_gmt":"2020-03-15T15:11:27","slug":"fraud-vs-misrepresentation","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/","title":{"rendered":"FRAUD VS MISREPRESENTATION"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/#FRAUD_VS_MISREPRESENTATION\" title=\"FRAUD VS MISREPRESENTATION\">FRAUD VS MISREPRESENTATION<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/#FRAUD\" title=\"FRAUD\">FRAUD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/#MISREPRESENTATION\" title=\"MISREPRESENTATION\">MISREPRESENTATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/#FRAUD_VS_MISREPRESENTATION-2\" title=\"FRAUD VS MISREPRESENTATION\">FRAUD VS MISREPRESENTATION<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"FRAUD_VS_MISREPRESENTATION\"><\/span><strong>FRAUD VS MISREPRESENTATION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FRAUD\"><\/span><strong>FRAUD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Fraud means dishonestly making a false, untrue or misleading representation with a view to gain or with intention to cause loss. If the <a href=\"https:\/\/commerceiets.com\/fraud\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"fraud (opens in a new tab)\">fraud<\/a> results in injury to the deceived party, he\/ she may claim damages for the tort of deceit. A contract obtained by fraud is voidable on the grounds of fraudulent misrepresentation. \u00a0<\/p>\n\n\n\n<p><strong>ACCORDING TO&nbsp;SECTION\n17&nbsp;OF THE INDIAN CONTRACT ACT, 1872&nbsp;<\/strong><\/p>\n\n\n\n<p>\u201cFRAUD\u201d&nbsp;means and includes any of the following acts\ncommitted by a party to a contract, or by his agent, with intent to deceive\nanother party thereto or his agent, or to induce him to enter into the\ncontract:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The\nsuggestion, as a fact, of that which is not true, by one who does not believe\nit to be true;<\/li><li>The active\nconcealment of a fact by one having knowledge or belief of the fact;<\/li><li>A promise\nmade without any intention of performing it;<\/li><li>Any other act\nfitted to deceive;<\/li><li>Any such act\nor omission as the law specially declares to be fraudulent.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MISREPRESENTATION\"><\/span><strong>MISREPRESENTATION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A misrepresentation is an untrue statement of a material fact made by one party which affects the other party\u2019s decision in corresponding to a contract. If the <a href=\"https:\/\/commerceiets.com\/misrepresentation\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"misrepresentation (opens in a new tab)\">misrepresentation<\/a> is identified, the contract can be declared void.<\/p>\n\n\n\n<p><strong>ACCORDING\nTO SECTION 18 OF INDIAN CONTRACT ACT, 1872<\/strong><\/p>\n\n\n\n<p>\u201cMisrepresentation\nis a form of a statement made preceding to the contract being completed. There\nare two varieties of statement that can be performed before a contract is\nformed, these will either:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Form part of the contract.<\/li><li>Not form part of the contract, therefore it becomes a representation.\u201d<\/li><\/ol>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"FRAUD_VS_MISREPRESENTATION-2\"><\/span><strong>FRAUD VS MISREPRESENTATION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>\n  <strong>BASIS OF DIFFERENCE<\/strong>\n  <\/td><td>\n  <strong>FRAUD<\/strong>\n  <\/td><td>\n  <strong>MISREPRESENTATION<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>MEANING<\/strong>\n  <\/td><td>\n  A deceptive\n  act done intentionally by one party in order to influence the other party to\n  enter into the contract is known as Fraud.\n  <\/td><td>\n  The\n  representation of a misstatement, made innocently, which persuades other\n  party to enter into the contract, is known as misrepresentation.\n  <\/td><\/tr><tr><td>\n  <strong>DEFINED IN<\/strong>\n  <\/td><td>\n  Fraud is\n  defined under Section 2 (17) of the Indian Contract Act, 1872.\n  <\/td><td>\n  Misrepresentation\n  is defined under Section 2 (18) of the Indian Contract Act, 1872.\n  <\/td><\/tr><tr><td>\n  <strong>PURPOSE TO DECEIVE THE OTHER PARTY<\/strong>\n  <\/td><td>\n  The purpose\n  of fraud is to deceive the party.\n  <\/td><td>\n  The purpose\n  of misrepresentation is not to deceive the party.\n  <\/td><\/tr><tr><td>\n  <strong>VARIATION IN EXTENT OF TRUTH<\/strong>\n  <\/td><td>\n  In a fraud,\n  the party making the representation knows that the statement is not true.\n  <\/td><td>\n  In\n  misrepresentation, the party making the representation believes the statement\n  made by him is true, which subsequently turned out as false.\n  <\/td><\/tr><tr><td>\n  <strong>CLAIM<\/strong>\n  <\/td><td>\n  The\n  aggrieved party has the right to claim for damages.\n  <\/td><td>\n  The\n  aggrieved party has no right to sue the other party for damages.\n  <\/td><\/tr><tr><td>\n  <strong>VOIDABLE<\/strong>\n  <\/td><td>\n  The\n  contract is voidable even if the truth can be discovered in normal diligence.\n  <\/td><td>\n  The\n  contract is not voidable if the truth can be discovered in normal diligence.\n  <\/td><\/tr><tr><td>\n  <strong>CONSENT<\/strong>\n  <\/td><td>\n  The consent of the party is obtained by\n  committing a fraud by the other party.\n  <\/td><td>\n  The consent of the party is gained because\n  of the misrepresentation of information by the other party.\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><strong>CONCLUSION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The acts done fraudulently are civil wrong and hence the\nparty doing it can be sued in court by the aggrieved party even if the\naggrieved party has a means of discovering the truth in the normal course of\naction. Misrepresentation is not a civil wrong as the party making the wrong\nrepresentation honestly have no&nbsp;idea about the actual truth and so the\naggrieved party cannot sue the other party in court but it has the option to\nrescind the contract.<\/p>\n\n\n\n<p>Hence, there is an absence of <a href=\"https:\/\/commerceiets.com\/free-consent-in-contract\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"free consent (opens in a new tab)\">free consent<\/a> in both the conditions whether it is fraud or misrepresentation that is why the contract is voidable at the option of the party whose consent was so caused.<\/p>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FRAUD VS MISREPRESENTATION FRAUD Fraud means dishonestly making a false, untrue or misleading representation with a view to gain or with intention to cause loss. If the fraud results in injury to the deceived party, he\/ she may claim damages for the tort of deceit. A contract obtained by fraud is voidable on the grounds&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;FRAUD VS MISREPRESENTATION&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3967,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[2,56],"tags":[],"class_list":["post-3966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-law","category-difference-between"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3966"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3966"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3966\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3967"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}