Meaning of Fraud: (Section 17 of the Indian Contract Act, 1872):\n'Fraud' means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with an intent to deceive another party thereto or his agent, or to induce him to enter into the contract:\n(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;\n(2) the active concealment of a fact by one having knowledge or belief of the fact;\n(3) a promise made without any intention of performing it;\n(4) any other act fitted to deceive;\n(5) any such act or omission as the law specially declares to be fraudulent.\nEffect of Fraud upon validity of a contract: When the consent to an agreement in caused by the fraud, the contract is voidable at option of the party defrauded and he has the following remedies:\n(1) He can rescind the contract within a reasonable time.\n(2) He can sue for damages.\n(3) He can insist on the performance of the contract on the condition that he shall be put in the position in which he would have been had the representation made been true.\nException: In the following cases, contract is not voidable:\n(i) If the party whose consent was caused by silence which amounting to fraud, had the means of discovering the truth with ordinary diligence.\n(ii) A fraud which did not cause the consent of the party to agreement.