THE LEGAL WATCH
Trusted Contract Advisory
TLW - Contract Awareness Initiative
TLW - Legal Awareness Initiative
A simple difference is that in fraud the promisor is well aware that the facts he is producing before the promisee to gain his consent for the contract are false.
But in misrepresentation the promisor himself is not aware that the facts he has produced are false. He belives them to be true.
in both fraud and misrepresentation a false statement is made , but
in fraud it is done with a dishonest intention i.e the maker of the statement knows that his statement is false but yet he makes it in order to mislead the other innocent party to the agreement and gain an advantage at the cost of the other
in misrepresentation , also a false statement is made but the maker believes such statement to be-true as he has relied on untrustworthy and inaccurate source of information , or a tampered source of information or he himself doesn’t know the complete truth. Basically dishonest intention is lacking in misrepresentation .
The difference between fraud and Mrs representation is is the intention of the parties. In fraud misrepresentation is made willfully to deceive the party whereas in misrepresentation it is made innocently without any intention to receive the other party. The person making the wrong statement does not believe it to be true in case of fraud there as the person making the wrong statement believe it to be true in case of misrepresentation. In case of fraud the contract is voidable even to the aggrieved party had the means of discovering the truth with ordinary diligence and in case of misrepresentation the contract is not voidable if the aggrieved party had the means of discovering the truth with ordinary diligence