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Q:-1 Distinguish between fraud and misrepresentation.

Ans:-

Fraud:-

Making a material misrepresentation or failing to disclose a material fact in order to induce another to give up something of value. Most fraud claims in divorce relate to fraud in the inducement to marry, separation agreements, and the introduction of evidence at trial. In order to over-turn an earlier judgment on the basis of fraud, the fraud must be material. Meaning it must be a matter of law. The victim of the fraud must prove that she/he suffered substantial harm as a result and she/he could not have detected the fraud at the time it occurred by using reasonable care. It is important to know that there is a statute of limitations on fraud. If you feel that you have been defrauded in some way in regard to a particular aspect of your divorce you need to act immediately. Do not allow the statute of limitations to run and leave you in a position of not being able to do anything.

Misrepresentation:Fraudulent, negligent, or innocent misstatement, or an incomplete statement, of a material fact. If a specific misrepresentation induces the other party to enter into a contract, that party may have the legal right to rescind the contract or seek compensation for damages. The guilty party avail of the defense that the wronged party could have checked the facts and have discovered what was wrong. A misstatement of an intention or opinion is generally not considered a misrepresentation.

Difference between Fraud and Misrepresentation:The main difference in fraud and misrepresentation are,

1) In misrepresentation the person making the false statement believes it to be true. In


fraud the false statement is person who knows that it is false or he does not care to know whether it is true or false.

2) There is no intention to deceive the other party when there is misrepresentation of


fact. The very purpose of the fraud is to deceive the other party to the contract.

3) Misrepresentation renders the contract voidable at the option of the party whose
consent was obtained by misrepresentation. In the case of fraud the contract is voidable It also gives rise to an independent action in tort for damages.

4) Misrepresentation is not an offence under Indian penal code and hence not
punishable. Fraud, in certain cases is a punishable offence under Indian penal code.

5) Generally, silence is not fraud except where there is a duty to speak or the relations
between parties is fiduciary. Under no circumstances can silence be considered as misrepresentation.

6) The party complaining of misrepresentation cant avoid the contract if he had the
means to discover the truth with ordinary deligance. But in the case of fraud, the party making a false statement cannot say that the other party had the means to discover the truth with ordinary deligance.