Fraud

Indian Contract Act, 1872

1. FRAUD BUSINESS LAW S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

2. FREE CONSENT According to Sec.14 of the Indian Contract Act, 1872, consent is said to be free when it is not caused by : Coercion (Sec.15) Undue influence (Sec.16) Fraud (Sec.17) Misrespresentation (Sec. 18) Mistake (Secs.20,21&22) S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

3. FRAUD Willful representation made by a party to contract with the intention to deceive the other party, or induce such a party to enter into a contract. It means a false statement made knowingly, without belief in its truth, or recklessly without caring whether it is true or false. Fraud denotes an absence of honest belief and presence of a wicked mind. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

4. FRAUD - DEFINITION According to sec.17, Fraud means and includes any of the following acts done with the intention to deceive or to induce a person to enter into a contract. A false suggestion known to be false OR not believed to be true. The active concealment of a fact with the knowledge or belief of the fact. A promise made without any intention of performing it. Doing any other act fitted to deceive . Doing any such act or making any such omission which the law specially declares to be fraudulent. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

5. Elements of Fraud Fraud must have been committed by a party to the contract or by his agent . Fraud by a stranger does not affect the validity of the contract. Must be one of the following: False statement Concealment Only promise and no execution Other act if any. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

6. Elements of Fraud 3. Any such act or omission which the law specially declares to be fraudulent. 4. Must have been committed with the intention to deceive and must have actually deceived . 5. The deceit must have been aimed at the other party to the contract or his agent . 6. The other party must have relied upon the statement and must have been deceived. 7. The other party must have suffered some loss subsequently. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

7. CONSEQUENCES OF FRAUD The aggrieved party/victim have the following remedies. Right to rescind the contract Insist on performance Sue for damages Restitution S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM

8. S.M. GOLDYN ABRIC SAM, ASST. PROFESSOR, DEPT. OF MANAGEMENT STUDIES, NMCC, MARTHANDAM