(a) Fraud renders a contract void.
(b) Misrepresentation renders a contract voidable.
(c) Misrepresentation is more or less an intentional wrong, whereas fraud may be quite innocent.
(d) Damages for loss caused by innocent misrepresentation are assessed on the same principles as in the case of a deliberate fraud.
Analysis of Statements
The question requires identifying the statements that are incorrect concerning contract law principles related to fraud and misrepresentation.
Statement (a): Fraud renders a contract void.
Incorrect. A contract induced by fraud is typically voidable by the aggrieved party, not void ab initio (invalid from the beginning). The contract remains valid unless the innocent party chooses to rescind it.
Statement (b): Misrepresentation renders a contract voidable.
Correct. This holds true for fraudulent, negligent, and innocent misrepresentations. The contract becomes voidable at the option of the party who was misled.
Statement (c): Misrepresentation is more or less an intentional wrong, whereas fraud may be quite innocent.
Correct. This statement asserts that misrepresentation often involves intentional conduct, while implying that some acts classified as fraud might arise from circumstances the perpetrator perceived as less intentionally deceptive.
Statement (d): Damages for loss caused by innocent misrepresentation are assessed on the same principles as in the case of a deliberate fraud.
Incorrect. The assessment of damages differs. For fraud, damages can be extensive, covering losses due to deceit. For innocent misrepresentation, damages are usually awarded to restore the party to the position they would have occupied had the misrepresentation not been made, often as an alternative to rescission.
Conclusion on Incorrect Statements
Statements (a) and (d) were identified as incorrect.
- Statement (a) mischaracterizes fraud as rendering a contract void, rather than voidable.
- Statement (d) incorrectly claims the principles for assessing damages in innocent misrepresentation and fraud are identical.
Therefore, the correct selection is the one identifying statements (a) and (d) as wrong.
Important Questions from Law Relating To Contracts
A contract is said to be discharged by rescission:
A. When terms of a contract are altered
B. When a party makes novation of a contract
C. When an aggrieved party exercises his option to avoid the contract
D. When a party to a contract waives his rights under the contract
E. Where none of the parties has performed its part for a long time and no other party has objected against it
Choose the correct answer from the options given below:
Which of the following statements are TRUE in a contractual capacity?
A. Law presumes that every person is competent to contract unless otherwise proved
B. That a minor can make a contract for necessities of life
C. That a person of unsound mind can enter into the family contracts
D. A convict cannot enter into a valid contract nor can sue
E. That a wife can always make valid business contracts and bind her husband
Choose the correct answer from the options given below:
- Under the Equal Remuneration Act, 1976, which of the following is prohibited ?
- What does psychological emotional abuse include ?
(a) Failure to provide adequate food or clothing.
(b) Provide basic education.
(c) Striking a child
(d) Engaging in a Sexual act or shaming a child.
Choose the correct answer from the options : - What is the purpose of 'The One Stop Centers mentioned in the context of gender-based violence ?
