Contract Law: Free Consent: Fraud
FRAUD When the consent of a party to the contract has been obtained by fraud, the consent is not free consent which is necessary for the formation of a valid contract. In such a case the contract is voidable at the option of the party whose consent has been so obtained (Section 19). Fraud or deceit is also a tort, for which an action for damages can also lie. Section 17 defines fraud as follows: "Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with intent to deceive another party thereto or his agent, or to induce him, to enter into the contract: (1) the suggestion, as to a fact, of that which is not true by one who does not believe it to be true; (2) the active concealment of a fact by one having knowledge or belief of the fact; (3) promise made without any intention of performing it (4) any other act fitted to deceive; (5) any such act or omission as the law specially declares to ...