Contract Drafting & Law Course Preview
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<p class="banner-heading-text-two-line"><span>Module I: Contract Law Essentials—Fraud</span>
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<p><span class="padded-dropcap">F</span>raud means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:</p>
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<li>The suggestion, as a fact, of that which is not true, by one who does not believe it to be true;</li>
<li>The active concealment of a fact by one having knowledge or belief of the fact;</li>
<li>A promise made without any intention of performing it;</li>
<li>Any other act fitted to deceive;</li>
<li>Any such act or omission as the law specially declares to be fraudulent.</li>
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<li>The party whose consent was obtained by fraud can rescind the contract. But he cannot do so in the following circumstances:</li>
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<p>(i) Where silence amounts to fraud, the aggrieved party cannot rescind the contract if he had the means of discovering the truth with ordinary diligence;</p>
<p>(ii) Where the party consents in ignorance of fraud;</p>
<p>(iii) Where the party, in spite of becoming aware of fraud, benefits out of the contract;</p>
<p>(iv) Where the parties cannot be restored to their original position; and</p>
<p>(v) Where an innocent third party before the contract is rescinded acquires for consideration some interest in the property under the contract.</p>
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<li>A party to a contract whose consent was caused by fraud may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position in which he would have been if the representations made had been true.</li>
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<p>Watch the following videos to understand what may amount to fraud when contracting.</p>
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