Page 65 - PRINCIPLE OF LAW- FINAL (eISBN) pdf

Politeknik Kota Bharu

Fraud (Clause 17)
✓ “Fraud” 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 the contract:

▪ The suggestion, as to a fact, of that which is not true by one

who does not believe it to be true.

▪ The active concealment of a fact by one having knowledge

or belief of the fact.

▪ A promise made without any intention of performing it.

▪ Any other act fitted to deceive; and

▪ Any such act or omission as the law specially declares to be

fraudulent.

Misrepresentation (Clause 18)

✓ The positive assertion, in a manner not warranted by the

information of the person making it, of that which is not true,

though he believes it to be true.

✓ Any breach of duty which, without an intent to deceive, gives

an advantage to the person committing it, or anyone claiming

under him, by misleading another to his prejudice, or to the

prejudice of anyone claiming under him; and
✓ Causing, however innocently, a party to an agreement to make

a mistake as to the substance of the thing which is the subject

of the agreement.

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