Home › CLAT (NLU Prep) › law › Formation of Contract › Under Section 17, fraud in a contract does NOT i…
Under Section 17, fraud in a contract does NOT include
A{'text': 'Suggesting a fact known to be untrue', 'label': 'A'}
B{'text': 'Concealment of a material fact by a party', 'label': 'B'}
C{'text': 'A promise made without any intention of performing it', 'label': 'C'}
D{'text': 'A representation made in good faith after due enquiry', 'label': 'D'}
Answer & Solution
Correct answer: D. {'text': 'A representation made in good faith after due enquiry', 'label': 'D'}
1. Section 17 defines fraud in a five-clause list.
2. Suggesting as fact something known to be untrue.
3. Active concealment of a material fact by one having knowledge or belief.
4. A promise made without any intention of performing it. A representation made in good faith after due enquiry is expressly excluded from fraud.
_Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 17_
Related questions
Agreements in restraint of legal proceedings, in restraint of trade and in restraint of maThe term "consideration" in Section 2(d) may be furnished byUnder Section 15, "coercion" includesAn agreement by way of wager is under Section 30Agreements the meaning of which is not certain, or capable of being made certain, are undeUnder Section 28, agreements restricting a party's right to enforce legal rights in ordinaUnder Section 27, an agreement in restraint of trade isUnder Section 26, an agreement in restraint of the marriage of a person, other than a mino