Question

Discuss the differences between fraud, undue influence and misrepresentation

Answer 1

Ans:

No.	Basis	Fraud	Undue Influence	Misrepresentation
1.	Meaning	Fraud may be defined as an intentional, deliberate or willful misstatement of facts, which are material for the formation of a contract. here intention to deceive is most important.	The term Undue influence means the unfair use of one's superior power in order to obtain the consent of a person who is in a weak position.	Misrepresentation is an innocent misstatement of facts which are material for a contract.
2.	Nature	A fraud is intentional and deliberate	Consent obtained by dominating the will of others.	A misrepresentation is the result of being ignorant of facts.
3.	Rights of the Aggrieved party	The Aggrieved party can a)repudiate the contract b)affirm the contract c) claim damages.	It is the discretion of the court whether to direct the aggrieved party to restore or refund the benefit received	The Aggrieved party can a)repudiate the contract b)affirm the contract.
4.	Nature of Liability	If a person found guilty of fraud he/she is liable to a fine or imprisonment for up to twelve months.	Liability in Undue Influence is Not criminal liability	A misrepresentation need not be intentionally false to create liability. This occurs when one makes representation with intent to deceive and with the knowledge, which is it false
5.	Example	If a jeweller sells you a diamond ring which you later discover is crystal, this is a case of fraud.	If a family member is left out of a will, especially if they would have expected to be included, this is a case of undue influence	A seller unknowingly offering defective merchandise, this is a case of misrepresentation.