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Vibhav   22 August 2024

Common law fraud vs. fraud under indian contract act

Section 17 of the Indian Contract Act talk about Fraud and voiding the contract if it is based upon Fraud.

Section 65 of the Indian Contract Act States:

When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person from whom he received it.

Section 73 of the Indian Contract Act talk about compensation for loss or damage caused by breach of contract

Then there is common law fraud.

If one is a victim of fraud arising in a contract, which I am, would it be advisable to plead just common law fraud and not fraud under the Indian Contract Act? Because pleading Fraud under the Indian Contract Act would require seeking to render the Contract void and therefore trigger Section 65 of the Indian Contract Act which will require that I repay for any advantage received.  While pleading common law fraud would not require me to do so.

Only those who truly understand this question need reply.  Please do not provide answers which question why I am asking this question or ask me to consult and advocate.  Any question requesting genuine clarification are, however, most welcomed.

This is not an academic question.  Thank you. 

 



Learning

 1 Replies

T. Kalaiselvan, Advocate (Advocate)     22 August 2024

Your concern is understood.

You are in a situation seeking specific  relief without affecting your interest on the whole issue.

Well, you know the subject very properly than anyone because you are the one undergoing the situation, hence you should use your prudence in such a way that will enable you to take a decision which will not affect your interests but will provide you the releifs which you are looking for.

If you are looking for relief through common law fraud then you may have to impicate the abetter  in a criminal complaint, which would again affect your other process, therefore you take abundant precaution while handling this sensitive matter.

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