Section 17 in The Indian Contract Act, 1872 17. ‘Fraud’ defined.—‘Fraud’ means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:— tc 17. ‘Fraud’ defined.—‘Fraud’ means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract\: (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true; tc (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true; (2) the active concealment of a fact by one having knowledge or belief of the fact; tc (2) the active concealment of a fact by one having knowledge or belief of the fact; (3) a promise made without any intention of performing it; tc (3) a promise made without any intention of performing it; (4) any other act fitted to deceive; tc (4) any other act fitted to deceive; (5) any such act or omission as the law specially declares to be fraudulent. tc (5) any such act or omission as the law specially declares to be fraudulent. Explanation.—Mere 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 speak2, or unless his silence, is, in itself, equivalent to speech. tc Explanation.—Mere 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 speak1, or unless his silence, is, in itself, equivalent to speech. Illustrations tc Illustrations (a) A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness. This is not fraud in A. tc (a) A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness. This is not fraud in A.
Posted on: Mon, 25 Aug 2014 07:49:00 +0000
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