Fraud 6 1
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Fraud 6 1

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Fraud 6 1 Fraud 6 1 Presentation Transcript

  • Fraud Sec.17 & 18
    • Sec.17:
    • “ Fraud means & includes any of the follow.
    • Acts committed by a party to a contract
    • (or with his connivance or by his agent)
    • With intent to deceive another party
    • Thereto or his agent, or to induce him
    • to enter into the contract” –
    • The suggestion as a fact,of that which is
    • not true,by one who does not believe
    • It to be true
  • ii) The active concealment of a fact by one having knowledge or belief of the fact iii) A promise made without the intention of performing it iv) Any other act fitted to deceive v) Any such act or omission as the law Specially declares to be fraudulent.
    • Acts which constitutes Fraud:
    • False statement of a fact 1
    • Active concealment of a fact 2
    • A promise made w/o the intention of
    • performing it 3
    • iv) Any other act fitted to deceive 4
    • v) Any other act or omission as the law
    • Specially declares to be fraudulent 5
  • Essential elements of Fraud:
    • A representation or assertion,& it must be false 6
    • The representation or assertion must be of a fact 7
    • The representation or statement must have been made with knowledge of its falsity or w/o belief in its truth or recklessly 8
    • The representation must have been made with the intention of inducing the other party to act upon it
    • The representation must in fact deceive 9
    • The party subjected to fraud must have suffered some loss
  • Consequences of Fraud:
    • He can avoid the performance of the contract
    • He can insist that the contract shall be performed & that he shall be put in the position in which he would have been if the representation made had been true 10
    • He can sue for damages
  • Exceptions i.e.where the contract is not voidable
    • When the party whose consent was caused by misrepresentation or fraud had the means of discovering the truth with ordinary diligence
    • Where a party,after becoming aware of the misrepresentation or fraud takes a benefit under the contract or in some other way affirm it
  • Silence as Fraud:
    • Silence as to facts likely to affect the willingness of a person to
    • Enter into a contract is not fraud unless,:
    • The circumstances of the case are such that
    • Regard being had to them,it is the duty of the
    • person keeping silence to speak.
    Duty: Fiduciary relation, where the contract is UBRIMAE FIDEI, obligation imposed by statute 11 ii) Silence in itself is equivalent to speech 12