Comprehension
It is essential to the creation of a contract that both parties should agree to the same thing in the same sense. Mutual consent, which should also be a free consent, is the sine qua non of a valid agreement and one of its essential elements is that a thing is understood in the same sense by a party as is understood by the other. Not only consent, but free consent is provided in Section 10 of the Indian Contract Act, 1872 to be necessary to the complete validity of a contract. Consent is free when it works without obstacles to impede its exercise. Where there is no consent or no real and certain object of consent, there can be no contract at all. Where there is consent, but not free consent, there is generally a contract voidable at the option of the party whose consent was not free. A general averment that consent was not freely obtained is not enough, and it is necessary to set up one of the vitiating elements such as fraud which includes, false assertion, active concealment, promise without intention of performing it, any other deceptive act, or any act declared as fraudulent. In order to constitute fraud, the act should have been done by the party to the contract, or by any other person with his connivance, or by his agent and with intent to deceive the other party thereto or his agent, or to induce him to enter into the contract. There is no duty upon parties to speak about facts likely to affect the other party’s consent to the contract and mere silence does not amount to fraud, unless the circumstances of the case show that there is duty to speak, or silence is, in itself equivalent to speech. On the other hand, misrepresentation falls into three categories: (i) a statement of fact, which if false, would be misrepresentation if the maker believes it to be true, but which is not justified by the information he possesses; (ii) any breach of duty which gains an advantage to the person committing it by misleading another to his prejudice, there being no intention to deceive; and (iii) causing a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement, even though done innocently.
Question: 1
Which of the following statements correctly depicts the essentials of misrepresentation?
Which of the following statements correctly depicts the essentials of misrepresentation?
Updated On: Jul 9, 2024
- A misrepresentation is a positive statement of fact, which is made or adopted by a party to a contract and is untrue
- Misrepresentation and false representation do not mean the same
- If one party has induced the other to enter into a contract by misrepresenting, though innocently, any material fact especially within his own knowledge, the party misled cannot avoid the contract
- A misrepresentation is a negative statement of fact, which is made or adopted by a party to a contract and is true.
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The Correct Option is A
Solution and Explanation
The correct Answer is (A):A misrepresentation is a positive statement of fact, which is made or adopted by a party to a contract and is untrue
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Question: 2
Consider the statements given below and answer which one correctly describes a fraudulent act.
(I) The expression fraud means an intention to deceive, whether it is from any expectation of advantage to the party himself or from ill will towards the other is immaterial.
(II) A fraud is an act of deliberate deception with the design of securing something by taking an unfair advantage of another. It is a deception to gain from another’s loss.
(III) Fraud arises out of deliberate active role of representator about a fact.
Consider the statements given below and answer which one correctly describes a fraudulent act.
(I) The expression fraud means an intention to deceive, whether it is from any expectation of advantage to the party himself or from ill will towards the other is immaterial.
(II) A fraud is an act of deliberate deception with the design of securing something by taking an unfair advantage of another. It is a deception to gain from another’s loss.
(III) Fraud arises out of deliberate active role of representator about a fact.
(I) The expression fraud means an intention to deceive, whether it is from any expectation of advantage to the party himself or from ill will towards the other is immaterial.
(II) A fraud is an act of deliberate deception with the design of securing something by taking an unfair advantage of another. It is a deception to gain from another’s loss.
(III) Fraud arises out of deliberate active role of representator about a fact.
Updated On: Jul 9, 2024
- (I), (II) are correct
- (I) correct.
- (I), (II), (III) are correct.
- (I) and (II) are correct but (III) is incorrect.
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The Correct Option is C
Solution and Explanation
The correct Answer is (C):(I), (II), (III) are correct.
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Question: 3
Which of the following statements is correct?
Which of the following statements is correct?
Updated On: Jul 9, 2024
- Fraud is an innocent wrong whereas misrepresentation is an intentional wrong.
- The principal difference between fraud and misrepresentation is that in the former, the person making the suggestion does not believe it to be true and, in the latter, he believes it to be true
- In fraud and misrepresentation both, it is not a misstatement of fact which misleads the promisee
- Fraud and misrepresentation both are innocent wrongs
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The Correct Option is B
Solution and Explanation
The correct Answer is (B):The principal difference between fraud and misrepresentation is that in the former, the person making the suggestion does not believe it to be true and, in the latter, he believes it to be true
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Question: 4
Mr. A sells a car to Mr. Y, his childhood friend with a knowledge that the car is defective. Before buying the car, Mr. Y says to Mr. A, “If you do not deny it, I shall assume that the car is perfect”. Mr. A says nothing. In light of the statement, decide the liability of Mr. A.
Mr. A sells a car to Mr. Y, his childhood friend with a knowledge that the car is defective. Before buying the car, Mr. Y says to Mr. A, “If you do not deny it, I shall assume that the car is perfect”. Mr. A says nothing. In light of the statement, decide the liability of Mr. A.
Updated On: Jul 9, 2024
- A’s silence is equivalent to speech and hence a misrepresentation.
- A is not liable for fraud, but liable for misrepresentation.
- A is liable for fraud and misrepresentation both
- A’s silence is equivalent to speech and hence a fraud.
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The Correct Option is D
Solution and Explanation
The correct Answer is (D):A’s silence is equivalent to speech and hence a fraud.
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Question: 5
In which of the following statements will a contract not be voidable at the option of a party?
In which of the following statements will a contract not be voidable at the option of a party?
Updated On: Jul 9, 2024
- When a party takes consent by fraud
- When a party takes consent by misrepresentation.
- A contract entered by fraud and misrepresentation is neither void nor voidable
- When silence amounts to fraud, but the other party whose consent was taken had discovered the truth or had the means of discovering the truth with ordinary diligence
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The Correct Option is D
Solution and Explanation
The correct Answer is (D):When silence amounts to fraud, but the other party whose consent was taken had discovered the truth or had the means of discovering the truth with ordinary diligence
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His subject-matter will be determined by the age he lives in — at least this is true in tumultuous, revolutionary ages like our own — but before he ever begins to write he will have acquired an emotional attitude from which he will never completely escape. It is his job to discipline his temperament, but if he escapes from his early influences altogether, he will have killed his impulse to write. I think there are four great motives for writing, at any rate for writing prose. They are: (i) Sheer egoism: Desire to seem clever, to be talked about, to be remembered after death, to get your own back on grown-ups who snubbed you in childhood; (ii) Aesthetic enthusiasm: Desire to share an experience which one feels is valuable and ought not to be missed (iii) Historical impulse: Desire to see things as they are, to find out true facts and store them up for the use of posterity (iv) Political purpose: Desire to push the world in a certain direction, to alter other people's idea of the kind of society that they should strive after.
[Extracted with edits from George Orwell's "Why I Write"]- CLAT - 2025
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(Extract with edits from "The right kind of Education" by J. Krishna Murti)- CLAT - 2025
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[Extracted with edits from "Education" by Swami Vivekananda]- CLAT - 2025
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While the reservation of one-third of seats for women belonging to the scheduled castes and tribes under the amendment to article 330a and 332 of the constitution is a welcome step, it remains to be seen whether it fully acknowledges the complex interplay of hierarchies, socio-political relationships which also affect the extent and nature of complications that surround effective realisation of women's politics for Indian politics to emerge as a truly emancipatory space.- CLAT - 2025
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