Distinction between fraud and
misrepresentation:
|
Basis of
difference
|
Fraud
|
Misrepresentation
|
|
Intention
|
To deceive the other
party by hiding the truth.
|
There is no such intention to deceive
the other party.
|
|
Knowledge
of truth
|
The person making the suggestion
believes that the
statement as untrue.
|
The person
making the statement believes it to be true, although it is not true.
|
|
Recission of the contract and claim for damages
|
The injured party can repudiate the
contract and claim damages.
|
The injured
party is entitled to repudiate the contract or sue for restitution but cannot
claim the damages.
|
|
Means
to discover the truth
|
The party
using the fraudulent act cannot secure or protect himself by saying that the
injured party had means to discover the truth.
|
Partycanalways pleadthat the
injured party had the means to discover the truth.
|
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