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) DamagesWhere 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)
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