1.

Deceit or Fraud
The wrong of deceit consists in wilfully making a false statement with an
intent to induce the plaintiff to act upon it and is actionable when the Plaintiff
suffersdamage by acting upon the same.
For fraud, it is essential that the statement should be false. There should
be a positive false statement, mere non-disclosureof facts is not enough. For
example,if a candidatein an examinationform does not disclosethat he is
short of lectures, and the university authorities negligently do not verify the
same, there is no fraud by him and his candidaturecannot be cancelledon
that ground. (Sri Krishan v. Kurukshetra University). However, when only a
part of the statement has been made and the other part withheld with a view
to convey a false impression, the same is actionable. Non-disclosure of facts
when there is a duty to discloseand active concealmentof defects in the goods
sold may also amount to fraud.
 To make the defendant liable for fraud, it has also to be proved that the
defendanteither knew that the statementis false or did not believe in its Yuth.
A statement made under the honest belief that it is true cannot amount to
fraud.Thus, in Derry v. Peek, the directorsof a company were held not liable
for fraud when they honestly believed that permission to run framways with
steam power would be granted to them as a matter of course and made a
statement in the prospectus that such a permission was there although, in fact,
such a permission was actually subsequently refused.
An intenåon to deceiveis anotheressential.If the defendant kiows or
has reason to believe that the statement which he is making to A may be acted
upon by B, he will be liable to B when B actually acts upon that statement
even though the statement was originallymade only to A. (Langridge v. Levy).
If, however,the statementwas not intended to be meant for the plaintiff, he
cannot sue even though he has acted upon the statement and has suffered
damage thereby. (Peek v. Gurney).
The plaintiff has also to prove that he acted on the reliance of that
statementand suffereddamage. If the plainåff has either acted independently
of that statementor has sufferedno damage,he will not be
an action for deceit. entitled to bring