Misrepresentation vs Fraud: Key Legal Differences
Trust and confidence in both accurate information and truthful behaviour are fundamental when two parties contract with one another. If one side provides the other with false information, the contract may become void. These instances in contract law of India are categorised as misrepresentation and fraud. Although they sound alike, the law segregates them. Knowing these distinctions helps you better assess your claims and remedies. What Does Misrepresentation Mean? Misrepresentation refers to the act of providing a false statement, the consequence of which will lead the other party to enter into a contract. In these situations, one does not have to mean to deceive the other parties. Under the contract law , misrepresentation means that the false statement made must be: ● Material in nature, meaning that it pertains to an important fact. ● Impact the parties to the con...