Define Misrepresentation and Fraud. Explain the difference between Fraud and Misrepresentation as per the Indian Contract Act, 1872.

Definition of Fraud : Refer Ans 8 Definition of misrepresentation: Refer Ans 11 Distinction between fraud and misrepresentation: Basis Fraud Misrepresentation Intention To deceive the other party by hiding the truth. There is no such intention to deceive the other party. Knowledge of Truth The person making the suggestion believes that the statement as untrue. The person making the statement believes it to be true, although it is not true. Rescission of the contract and claim for damages The injured party can repudiate the contract and claim damages. The injured party is entitled to repudiate the contract or sue for restitution but cannot claim the damages. Means to discover the truth The party using the fraudulent act cannot secure or protect himself by saying that the injured party had means to discover the truth. Party can always plead that the injured party had the means to discover the truth.