DIFFERENCE BETWEEN FRAUD & MISREPRESENTATION

FRAUD	MISREPRESENTATION
1. Fraud contains the intention to deceive.	1. It does not contain any such intention.
2. The facts are altered with the Intention to deceive the other Person.	2. No such thing in misrepresentation. Any is presented as such presented as such whereas it does not came out to be true
3. The guilty person has the knowledge of truth.	3. The guilty person has no knowledge of truth.
4. Fraud is a type of tort and so punishable.	4. It does not come under tort.
5. Contract by fraud can be rescinded to demand compensation.	5. Contract by misrepresentation can only be rescinded not demand compensation
6. The guilty person can not take the defence that the victim person as plaintiff could have find out the truth.	6. Such defence could be availed.
7. A deceptive act done intentionally by one party in order to influence the other party to enter into the contract is known as Fraud.	7. The representation of a misstatement, made innocently, which persuades other party to enter into the contract, is known as misrepresentation.
8. Section (17) of the Indian Contract Act, 1872	8. Section (18) of the Indian Contract Act, 1872
9. The aggrieved party, has the right to claim for damages.	9. The aggrieved party has no right to sue the other party for damages.
10. The contract is voidable even if the truth can be discovered in normal diligence.	The contract is not voidable if the truth can be discovered in normal diligence.

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