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Section 18 -The Indian Contract Act, 1872

The Indian Contract Act, 1872


18. “Misrepresentation” defined 


“Misrepresentation” means and includes –


(1) the positive assertion, in a manner not warranted by the information of the person making it, of that whichis not true, though he believes it to be true;


(2) any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or anyone claiming under him; by misleading another to his prejudice, or to the prejudice of any one claiming under him; 


(3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is subject of the agreement.




A statement is said to be warranted by the information of the person making it when he receives the information from a trustworthy source. It should not be a mere hearsay; Mohanlal v. Sri Gungaji Cotton Mills Co., (1900) 4 CWN 369.



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The Indian Contract Act, 1872



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