Misrepresentation and Fraud

Question A\n secrete\nThe main issue here(predicate) is whether silence of a ships company regarding trusted incidents related to the balance amount to fraud. When this happens, what ar the consequences if matchless of the parties has maintained silence all over a material fact of the agreement?\n\nLaw and industriousness\n dissimulation normally refers to certain false logical argument make by representator and which induces the new(prenominal) caller to enter into a take up nevertheless the representor does non particularize to shit. Therefore, according to Contracts Act 1950, on that point are two references of conjuring trick, which are fraud and misrepresentation.\nThe first type of misrepresentation is fraud. Fraud is defined in Section 17 Contracts Act 1950, to include that various(a) acts committed by a party with intent to deceive the other contracting party. As a simplification, fraud is through with the intention of wrongful own(prenominal) gains o r to cause detriment to some other person. In brief, when unity person is cheating purposefully on gaining at the depreciate of another party, he is express to have committed in fraud. However, there is no misrepresentation while the aggrieved party stick out discover the truth by himself, thus, the aggrieved party has the authority to power point the agreement and so get hold of for the losses.\nOn the other hand, another type of misrepresentation falls under Section 18 Contracts Act 1950, an untrue statement of fact made by one party to the other which was intended and did induce the latter(prenominal) to enter into the contract but the representator does not intent to deceive. Misrepresentation is mostly used in the context of contracts where an innocent party presents wrong facts which he was told by someone else asserted to be the truth as to temptation other party into sign language the contract. Generally speaking, misrepresentation is yet not presenting built-in information and it sometimes takes place as the person may not have knowledge of entire facts. As a result, the aggrieved party cannot terminate the contract or c...