Notes

Difference Between Fraud And Misrepresentation

Difference Between Fraud And Misrepresentation – Hello friends, You are again welcomed, before discussing difference, we will understand the meaning of both Fraud and Misrepresentation.

Meaning Of Fraud – It means deceit by one of the parties, i.e. when one of the parties deliberately makes false statements. So the misrepresentation is done with full knowledge that it is not true, or recklessly without checking for the trueness, this is said to be fraudulent. It absolutely impairs free consent.

Misrepresentation – Misrepresentation is also when a party makes a representation which is false, inaccurate, incorrect etc. The difference here is the misrepresentation is innocent, i.e. not intentional. The party making the statement believes it to be true.

Difference Between Fraud And Misrepresentation

Sr. No.BasisFraudMisrepresentation
1IntentionThe intention in a fraud is to deceive the other partyIntention is not to deceive, and is the result of being ignorant about something or having wrong information.
2Rights of the Aggrieved partyThe aggrieved party can: (a) repudiate the contract, (b) affirm the contract, (c) claim damages.Aggrieved party can: (a) repudiate the contract, (b) affirm the contract.
3DefenceIn ‘fraud by silence’, the accused cannot claim that the other party had the means to access the information or could have known the truth by ordinary meansIn a misrepresentation, the accused can claim that the other party had the means to access the information to know the correct position by ordinary means.
4LegalityIn case of fraud, the aggrieved party can file a suit to set aside the contract at any time. In other words, a contract made by fraud cannot be a valid contract.Misrepresentation, if the aggrieved party does not file a suit at the proper time, the contract is deemed to be a valid contract.
5NatureA fraud is international and deliberate.A misrepresentation is the result of being ignorant of a fact or facts.
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