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Vibhav   29 July 2024

Fraudulent intent to enter into a contract

I have a strange situation in a contract.

I entered into a MOU with a certain individual. An MOU was signed on date 1.  Later another MOU was possibly signed on date 2. I do not recollect. I never bothered to take copies from him. I do have an email that proves that I asked him for those as they were not given to me. I was too busy with other work.  Yes this sounds ridiculous but true.  He is a super rich person so I did not every think that he would resort to any fraud.

About four years later he gave me a Xerox copy.

Another four years pass by and I head into litigation. I dig back and find that the date on the MOU that he had given me just could not have been the same MOU that I supposedly signed on that date. 

The MOU was notarized and the only date on the signing page is the date stamped by the notary.  I have evidence that the other pages of the notarized agreement could not have been signed on the date notarized.

I got wary and found that there is a Supreme Court judgement against his person regarding allegations where he was involved in creating false document. That was sent back to the trial court. I have nothing to do with that judgement or case.

Question 1: I would like to know under what provision of law (Contract Act, I presume) will I be able to sure this person. It cannot be plain fraud because somehow this does not fit into the legal definintion of fraud I think.  Can some brilliant legal minds here give me some pointers on what is the CAUSE OF ACTION in this case?

Second question: The  MOU was intended to be for one purpose but the intent of the other party, in entering the MOU, as is clear now, was totally different. Is fraud actionable here when there is provision in the MOU that parties have not depended on any representations made by the other party?  I am confident that if the intent of the party was mala fide, there must be some cause of action. What is it under the facts presented here?

In your answer, please specify the elements required under the law, to fit the facts.

 

 

 



Learning

 3 Replies

T. Kalaiselvan, Advocate (Advocate)     29 July 2024

If you are really serious about the problems that you have posted here then all the relavant papers are to be scrutinized to render an appropriate suggestion/opinion suiting to the situation.

Since it is not possible to peruse all the relavant papers here, it is advised that you consult an expert lawyer in the local and get proper advise in person,  if that would solve your problem. 

1 Like

Vibhav   29 July 2024

Thank you. But there is a voluminous number of pages so I am trying to get an overall understanding first.

As stated earlier, I am willing to pay for the opinion. I think that questions asked do not need additional facts:

Example:

A enters into an agreement with B to build a huge office complex. B does not have the money required but has the experience and expertise so A says I will loan it to you so you become an equity holder in the project. They sign a loan agreement for A to loan B and thereby the joint project. A knows that B owns a big land in the city that is worth a few hundred crores. A then ensures that the projects fails so that A can now force B to enter into a JV with A to develop B's big land.  Under the law of contract where does the violation fit in when the contract agreement states that both parties have not relied on any representations by the other party. It is A's intent that was wrong  but it is not his representation at any time. The value of the joint project is 1/20th of the value of the land that B owns.

I think this is easy to answer without reviewing documents.

T. Kalaiselvan, Advocate (Advocate)     30 July 2024

From the inbformation subsequently given it can be noted that the agreement was on the basis of orally agreed conditions and there is no written condition to acquire each other's properties in case of failure to return the loan or if the project fails miserably.

In the absence of the property belonging to B not being involved as collateral sefurity then there is no question of breach of conditions if A is trying to enforce the contract conditions 


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