docu Sikkim Manipal University - MBA - MB0051 – Legal Aspects of BusinessSemester: 3 Assignment Set: 1Question 1: Distinguish between fraud

and misrepresentation.Ans wer:Distinction between fraud and misrepresentation: Sometimes the terms fraud and misrepresentation are used inter-changeably by re adershowever they are actually different. There is not a much difference between the two but a littleone as misrepresentation does not directly mean fraud. Belo w is a table on the salient points todistinguish the terms: FraudMisrepresentation The word fraud comes from the MiddleEnglish word “fraude” taken from the OldFrench a nd derived from the Latin “fraus”.The word fraud means a deliberate formof deception that is practiced to securesome sort of unlawful and unfair gain.Misrepresentat ion is a type of lying orfalsehood in which a person says or doessomething that would lead another personto believe something that is not “inaccordance with the f acts”.Implies on intention to deceive, hence it isintentional or willful wrong.It is an innocent wrong without anyintention to deceive. The person makingthe state ment believes it to be true.A civil wrong which entitles a party toclaim damages in addition to the right torescind the contract.It gives only the right to resc ind thecontract and there can be no suit fordamages.In fraud, the person making therepresentation does not himself believe inthe truth of the statement he is ma king. ncases of fraud, the person making thestatement is a complete liar and is makingthe statement to deceive others to enterinto a contractIn situations of in nocent misrepresentationthe person making the statement maybelieve that what he is saying is true. Thisis due to the fact that the person makingthe statement is simply repeating whatanother person has asserted to be trueDeceit, trickery, sh arp practice, or breachof confidence, perpetrated for profit or togain some unfa ir or dishonest advantage.A misrepresentation or concealment withreference to so me fact material to atransaction that is made with knowledgeof its falsity or in reckless disregard of itstruth or falsity and with the intent todeceive another and that is reasonablyrelied on by the other who is injuredthereby.Fraud always has malicious intent.Misrepresentation may not have maliciousintent to deceive if it happens negligentlythrough a misstatement and/or omissionof a material fac t(s).Types of fraud are:Fraud is fraud until you get into a legalissue. Then the re are differences but thereis only one type of fraud in realty.Types of misrepr esentation are: Fraudulent misrepresentation Negligent misrepresentation Innocent misrepresentation Question 2: What are the remedies for breach of contract? Bhupinder Singh Reg. No. 521063004 Page 1 of 9 ment

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