In Section 17(1) of the Indian Contract Act, the law outlines the essential elements of Fraud in Contract Law.
Let's break down these components:
This implies that there must be a statement or assertion made regarding a fact during the negotiation or formation of a contract. For example, if a seller claims that a product is brand new when it is actually used, it constitutes a false representation of fact.
The fact presented in the contract must be untrue or inaccurate. This means that the information provided is misleading or incorrect. For instance, if a contractor misrepresents the quality of materials used in a construction project, it would fulfill this criterion.
The person making the false representation must be aware that it is untrue. This criterion is crucial because it demonstrates the intent to deceive the other party. For instance, if a car salesman knowingly provides incorrect mileage information to increase the value of a vehicle, it meets this requirement.
According to the Indian Contract Act of 1872, mere silence is not classified as Fraud.
In exceptional cases, silence can be categorized as fraudulent when it misleads or causes harm to the other party due to deliberate withholding of crucial information.
43 videos|394 docs
|
1. What is the definition of fraud under Section 17 of the Indian Contract Act? |
2. What are the key components of Section 17 of the Indian Contract Act in relation to fraud? |
3. How does the Indian Contract Act define fraud and what constitutes it? |
4. What is the difference between misrepresentation and fraud as per the Indian Contract Act? |
5. How does fraud impact a contract under the Indian Contract Act? |
|
Explore Courses for UPSC exam
|