Wraping Misrep

People tend to fail to find the differences between Misrepresentation and Fraud. Before jumping into misrepresentation; let's take a look at simple differences. 

MISREPRESENTATION	ELEMENT	FRAUD
Yes	Wrong Information	Yes
No	Knowledge	Yes
No	Intention to Deceive	Yes

What I understand from misrepresentation, was there was no deceiving intention by the contracting party just the misleading information which failed for free consent because the wrong information has made another party decide wrongfully. The elements of misrepresentations are an unaware statement, breach of duty, and inducing mistakes of the subject matter. The misrepresentation should be fundamentally wrong with the purpose of the contract, there should be inequal knowledge for both contracting parties, and meeting of the state of mind. The illustrations for misrepresentation are; 

a)  State of mind, in certain cases where A buys shares to clear his debt, but he claims that he wanted to build a building using the shares, Court decides A misrepresented his purpose to buy the shares. 

b)  A banker gives wrong information of a contract to a client in hurry.

c) Opinion of a rice seller, saying rice type A is suitable for making rice crepes, but it was not. Supposedly rice type B was sufficient. The customer buys the rice type A believing the seller has more knowledge on rice. 

The contract is not void there is a misrepresentation between a third party in the contract and means of discovery, example, The car agent selling the second-hand car by lying to the contracting party that the car has only been driven for 1000km whereas the car has driven for almost 10000km.

 Now let's dive into today's learning; 

Section 18 of the Contracts Act 1950 defines the word 'misrepresentation'. It reads as follows:

18. 'Misrepresentation' includes:

(a) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;

(b) any breach of duty which, without an intent to deceive, gives an advantage to the person committing it, or any one claiming under him by misleading another to his prejudice, or to the prejudice of any one claiming under him; and

(d) causing, however innocently, a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement.

Before I Wrap, Where is my Shawarma...?