1. Fraud
Sec.17 & 18

2. 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

3. 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.

4. Acts which constitutes Fraud:
False statement of a fact1
Active concealment of a fact2
A promise made w/o the intention of
performing it3
iv) Any other act fitted to deceive4
v) Any other act or omission as the law
Specially declares to be fraudulent5

5. Essential elements of Fraud:
A representation or assertion,& it must be false6
The representation or assertion must be of a fact7
The representation or statement must have been made with knowledge of its falsity or w/o belief in its truth or recklessly8

6. The representation must have been made with the intention of inducing the other party to act upon it
The representation must in fact deceive9
The party subjected to fraud must have suffered some loss

7. 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 true10
He can sue for damages

8. 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

9. Silence as Fraud: The circumstances of the case are such that
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 statute11
ii) Silence in itself is equivalent to speech12