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Misrepresentation in Contract | Case Reference

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সতর্কীকরণ! কেস রেফারেন্স ওয়েবসাইটে প্রকাশিত অধিকাংশ নজীর বিভিন্ন বই ও ওয়েবসাইট থেকে সংগ্রহ করা হয়েছে। এই সকল নজীর এর সঠিকতার বিষয়ে কেস রেফারেন্স ওয়েবসাইট কোন নিশ্চয়তা প্রদান করে না। কেস রেফারেন্স ওয়েবসাইটে প্রকাশিত নজীর এর উপর নির্ভর এর আগে সংশ্লিষ্ট নজীরটির রেফারেন্স মিলিয়ে নেওয়ার অনুরোধ করা হচ্ছে।


Misrepresentation in Contract


Contract entered into through misrepresentations by defendant's officer in collusion with the plaintiff not enforceable in law. The defendant in the circumstances of the case is entitled to repudiate the contract on the ground of its being affected by fraud. (The plaintiff is however, entitled to take back his goods supplied to the defendant for the price of which he instituted the suit). Karnaphuli Paper Mills Ltd vs Amanullah, 23 DLR 150.

It must be proved that representations were made which were false to the knowledge of the party making them or were such that the party making them could have no reasonable belief that they were true, that they were made for the purpose of being acted upon. 45A 624; 1924 A 17; 21 ALJ 571.

But if he made same communication which, without the addition of certain other facts, would be necessarily misleading and he did soWhere there is an express intentionally, that would be "fraud".representation, or anything calculated to deceive or to cast suspicion upon a particular point, equal means of knowledge is immaterial. 1931 Mad603; 1930 MWN 973; 133 IC 372; IR 1931(Mad) 724.

False representation of facts-clause (1). To constitute fraud there must be an intention to deceive or to induce a person by misrepresentation or active concealment of an existing fact, to do or omit to do anything which he would not have done but for that inducement. It’s, therefore, necessary to prove that the act of omission was because of the inducement of account of the misrepresentation or concealment of fact and of not independent motives. There would be no cheating if the inducement had been subjected to scrutiny before the act or omission took place. PLD 1977 Lahore 1377.

Misrepresentation-the principal difference between fraud and miss representation is that in the one case the person making the suggestion does not believe it to be true and in the other he believes it to be true.although in both the cases it is a mis-statement of fact misleading the opposite party. 53A 374; 129 IC 545; 1931 (All) 154; 1931 ALJ 153.

Misrepresentation regarding the model of the car by the seller-If contract can be rescinded after the car had been seen by the buyer. In case of fraud and misrepresentation etc vitiating the contract unless there is a waiver on the part of the party affected, the right of recession would not be lost- Eastern Automobile Ltd vs Tasadique Hussain, PLD 1959 (Lah) 681. DLR 1960 (2) (WP) 523.

Voidability of contract without free consent. 
A stranger cannot impugn a registered document on the ground of misrepresentation, fraud or coercion. 36 B 47, 40 CLJ 67.

Where the misrepresentation or fraud is of such a nature that it could not have affected the consent of the party-the contract is voidable and cannot be set aside. 1921 MWN 340; 13 LW 525; 62 IC 764.

In the case of an active misrepresentation knowing the thing to be false as distinct from mere silence or concealment, it is not incumbent upon the party defrauded to establish that he had no means of discovering the truth, with ordinary diligence. The words "fraudulent within the meaning of section 17" used in exception to section 19 apply exclusively to "silence" and not to misrepresentation". Where a mortgage suit had abated and the mortgagee took a fresh mortgage without disclosing that the suit had abated, the non-disclosure did not amount to fraud. 53 AA 374; 1931 (All) 154.

Laches-Person seeking to avoid contract on basis of fraudulent representation has to be prompt in seeking redress. If such person allows a long time to elapse, he disentitles himself from obtaining any relief. PLD 1985 Karachi 481.

Misrepresentation must where the truth can be discovered with ordinary diligence. 71 IC 161; 38 IC 500; 36 IC 34.

Misrepresentation must be intentional. 19 ALJ 147; 61 IC 74; 19 ALJ 530; 63 IC 425.

Where a clause of re-entry contained in a Kabulyat was represented by Zamindar's agent as a mere penalty clause, the contract was vitiated by misrepresentation. 17 C 291; 17 IA 223 PC.

Silence in some cases may amount to misrepresentation, 42 C 28;

Mistake by innocent misrepresentation justifies repudiation of IC 193.
contract. 1932 (Bom) 151.

A misrepresentation should in fact materially induce the contract in order to give a right of avoidance. 31 CLJ 151.

Where certain sum was extorted from the plaintiff by placing him under a wrongful arrest, taking him to the and detaining him there, that sum could be recovered. 50 C 992; 38 CLJ 104: 28 CWN 110.

Abandonment of right under misrepresentation will not affect the original contract.

If there was no misrepresentation and both parties had been labouring under a misapprehension that the contract had been cancelled, the abandonment due to a mutual mistake, would not affect the plaintiff's rights. Under section 20 an agreement based on a mutual mistake is void and the same principle will apply to an abandonment of a right under a contract. S Sibtain Fazli vs Star Film Distributor. 16 DLR (SC) 198.




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