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FRAUD

MISREPRESENTATION

Party makes a false statement with intention to deceive other party.

Malafide intention to deceive other party is not there.

False statement is made by the party who knows that it is false.

2.

Statement in itself is false, but the person asserting it believes it to be true.

Except in cases of fraudulent silence, party at guilt cannot take the defence that other party could have discovered the truth with ordinary diligence. Contract can validly be avoided by the aggrieved party.

When there is a misrepresentation by one party but the other party has means to discover the truth with ordinary diligence then contract cannot be avoided.

Duress

Coercion

Doing an illegal act against a person whether it is a crime or tort.

Limited to any crime punishable under IPC

Implies threat or actually doing wrong to person only.

Applicable as much with regard to property as it is to person.

Threat must proceed and be directed against the party to the contract or his wife, parent, child or other near relative.

May proceed from or directed against any person.

English Law

Indian Law

Doctrine of Privity of Contract followed. Therefore, stranger to a contract cannot sue.

Doctrine of Privity of Contract followed. Therefore, stranger to a contract cannot sue.

Stranger to consideration cannot sue.

Stranger to consideration can enforce the contract. However a stranger to consideration cannot sue if he is stranger to the contract altogether.

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