Home | ARTS | Business Environment and Law | Fraud and it Effect -Law Of Contract

Business Environment and Law-Law Of Contract (Indian Contract Act 1872)

Fraud and it Effect -Law Of Contract

   Posted On :  07.05.2018 10:02 pm

Fraud means and includes any of the following acts committed by a party to a contract, or with his connivance or by his agent with intent to deceive another party thereto or his agent or to induce him to enter into the contract:

Fraud
 
 
Fraud means and includes any of the following acts committed by a party to a contract, or with his connivance or by his agent with intent to deceive another party thereto or his agent or to induce him to enter into the contract:

1. The suggestion, as a fact, of that which is not true by one who does not believe it to be true;
2. The active concealment of a fact by one, having knowledge and belief of the fact;
3. A promise made without any intention of performing it;
4. Any other act fitted to deceive;
5. Any such act or omission as the law specially declares to be fraudulent (Sec. 17)

Can silence be Fraudulent? (Sec. 17) “silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud unless the circumstances of the case are such that regard being had to them it is the duty of the person keeping silence to speak or unless his silence is in itself equivalent to speech.”

Exception: Silence would amount to Fraud if
a. It is the duty of the person keeping silence to speak. These are called uberrimae fidei contracts;
b. His silence is, in itself, equivalent to speech:

Effect of Fraud

Where Fraud is the cause of the contract:(i)Voidable Contract:(ii) Damages
Where Fraud is not the cause of contract: An attempt at deceit, which does not deceive, is no fraud.
Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
Last 30 days 74 views

OTHER SUGEST TOPIC