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