Define Misrepresentation and Fraud. Explain the difference between Fraud and Misrepresentation as per the Indian Contract Act, 1872.

Definition of Fraud under Section 17 of the Indian Contract Act, 1872: 'Fraud' means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with an intent to deceive another party thereto or his agent, or to induce him to enter into the contract: (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true; (2) the active concealment of a fact by one having knowledge or belief of the fact; (3) a promise made without any intention of performing it; (4) any other act fitted to deceive; (5) any such act or omission as the law specially declares to be fraudulent. According to Section 18, there is misrepresentation: (1) Statement of fact, which of false, would constitute misrepresentation if the maker believes it to be true but which is not justified by the information he possesses; (2) When there is a breach of duty by a person without any intention to deceive which brings an advantage to him; (3) When a party causes, even though done innocently, the other party to the agreement to make a mistake as to the subject matter. 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. Rescission 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. Party can always plead that the injured party had the means to discover the truth.