Question:
Choose the best option for the following statement:
The distinction between fraud and misrepresentation:
1. Fraud is more or less intentional wrong, whereas misrepresentation may be quite innocent.
2. In addition to rendering the contract voidable, is a cause of action in tort for damages. Simple misrepresentation is not a tort but a person who rightfully rescinds a contract is entitled to compensation for any damages which he has sustained through the non-fulfilment of the contract.
3. A person complaining of misrepresentation can be met with the defence that he had “the means of discovering the truth with ordinary diligence”. But excepting fraud by silence in other cases of fraud it is no defence that “the plaintiff had the means of discovering the truth by ordinary diligence”.
4. None of the above.
Choose the best option for the following statement:
The distinction between fraud and misrepresentation:
1. Fraud is more or less intentional wrong, whereas misrepresentation may be quite innocent.
2. In addition to rendering the contract voidable, is a cause of action in tort for damages. Simple misrepresentation is not a tort but a person who rightfully rescinds a contract is entitled to compensation for any damages which he has sustained through the non-fulfilment of the contract.
3. A person complaining of misrepresentation can be met with the defence that he had “the means of discovering the truth with ordinary diligence”. But excepting fraud by silence in other cases of fraud it is no defence that “the plaintiff had the means of discovering the truth by ordinary diligence”.
4. None of the above.
The distinction between fraud and misrepresentation:
1. Fraud is more or less intentional wrong, whereas misrepresentation may be quite innocent.
2. In addition to rendering the contract voidable, is a cause of action in tort for damages. Simple misrepresentation is not a tort but a person who rightfully rescinds a contract is entitled to compensation for any damages which he has sustained through the non-fulfilment of the contract.
3. A person complaining of misrepresentation can be met with the defence that he had “the means of discovering the truth with ordinary diligence”. But excepting fraud by silence in other cases of fraud it is no defence that “the plaintiff had the means of discovering the truth by ordinary diligence”.
4. None of the above.
Show Hint
Fraud = intentional; Misrepresentation = may be innocent. Fraud gives rise to tort action; misrepresentation does not.
Updated On: Aug 7, 2025
- : 1 is correct.
- : 1 & 2 are correct.
- : 1, 2 & 3 are correct.
- : Only 4 is correct.
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Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Fraud involves intentional deceit, while misrepresentation may occur innocently. Both can make a contract voidable, but only fraud (not innocent misrepresentation) creates a tort claim. A defense against misrepresentation exists if the truth could be known through diligence. However, this does not apply to fraud through silence, as the duty of full disclosure in such cases is higher.
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