Fraud vs Misrepresentation

Definition:
Fraud and misrepresentation are both terms commonly used in contract law to describe situations where one party makes false statements or conceals important information during the negotiation or formation of a contract. However, there are some key differences between the two.

1. Fraud:
Fraud refers to a deliberate act of deception, where one party intentionally makes false representations or statements with the intent to deceive the other party, and induce them to enter into a contract. It involves elements such as:

- False representation: The party making the false statement knows that it is untrue or has no belief in its truthfulness.
- Knowledge of falsity: The party making the false statement is aware that the statement is false.
- Intent to deceive: The party making the false statement intends to deceive the other party.
- Reliance: The other party relies on the false statement and suffers harm as a result.

2. Misrepresentation:
Misrepresentation, on the other hand, refers to a situation where a party innocently or negligently makes a false statement or conceals important information during the contract negotiation or formation. It includes:

- False representation: The party making the false statement genuinely believes it to be true or omits important information.
- No knowledge of falsity: The party making the false statement is not aware that the statement is false.
- No intent to deceive: There is no intention on the part of the party making the false statement to deceive the other party.
- Reliance: The other party relies on the false statement and suffers harm as a result.

Differences:
The main differences between fraud and misrepresentation are as follows:

- Intent: Fraud requires an intentional act of deception, while misrepresentation can be innocent or negligent.
- Knowledge of falsity: In fraud, the party making the false statement knows it is false, whereas in misrepresentation, the party may genuinely believe it to be true.
- Damages: Fraud generally leads to more severe consequences, including punitive damages, while misrepresentation may result in rescission or damages.
- Legal remedies: Fraud may give rise to criminal charges, while misrepresentation is typically a civil matter.

Conclusion:
In summary, fraud involves intentional deception with the intent to deceive and harm the other party, while misrepresentation refers to innocent or negligent false statements or omissions. The distinction between the two is important in determining the legal consequences and available remedies in contract law.

Fraud is a intentional satement where maker of the statement knows and belives that it is not to be true ..
And misrepresentation is different from fraud because maker of the statement belives it to be true ...