Difference between Fraud and Misrepresentation

  1. Fraud is defined under Sec. 17.
  2. Fraud means a misrepresentation made with an intention to cheat
  3. The distinction between fraud and misrepresentation is solely on intention.
  4. In case of fraud, the aggrieved party can avoid the contract even if the means to discover the truth were available.
  5. In case of fraud not only the agreement is voidable but also the aggrieved party can claim damages.
  1. Misrepresentation is defined under Sec. 19
  2. Misrepresentation means a misstatement made innocently.
  3. In case of misrepresentation misstatement is made innocently.
  4. In case of misrepresentation if the aggrieved party has the means to discover the truth, it cannot avoid the contract.
  5. In case of misrepresentation no damages can be claimed, the aggrieved party can only avoid the contract.

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