A contract the consent to that is induced using misrepresentation is voidable at the option of the deceived celebration.

Misrepresentation means misstatement of the fact material to the contract. Misrepresentation is defined in section 18 of The Indian Contract Act.

Misrepresentation includes:

(1) The high-quality declaration in a manner no longer warranted by way of the records of the individual making it, of that which isn't always true, although he believes it to be authentic;

(2) Any breach of an obligation which, without a cause to lie to, profits a benefit of the individual committing it, or anybody claiming under him, through deceptive every other to his prejudice, or the prejudice of any person claiming underneath him;

(3) Inflicting, but innocently, a party to an agreement, to make a mistake as to the substance of the thing that's the concern of the agreement.

Types of misrepresentation:

1. Unwarranted statement: when someone positively asserts that reality is true whilst his fact does no longer warrant it to be so, though he believes it to be authentic, which is a misrepresentation. For example, b instructed the plaintiff that one c would be the director of an organization. B had received these statistics not from c direct, however from every other individual, referred to as l. the records proved unfaithful. the decide stated: “I am now not inclined to assume if b relied on 2nd – hand facts he derived from l, he changed into warranted in making the positive assertion that c would be a director.
2. Breach of responsibility: any breach of duty which brings a bonus to the person committing it by way of deceptive the other to his prejudice is a misrepresentation. As an example: in the case, a husband undergoing vasectomy operation becomes no longer warned that there has been a mild hazard of his wife turning into pregnant, the medical professional becomes held responsible to the person and his wife for the pains of undesirable being pregnant.
3. Inducing mistake approximately problem – count: inflicting, however innocently, a celebration to a settlement to make a screw up as to the thing that's the difficulty of the agreement is likewise a misrepresentation. For example- the authorities auctioned sure forest coupes. Part of the land became occupied with the aid of tenants. The forest branch knew this reality but did not disclose it to the patron. The agreement changed into held to be vitiated via misrepresentation. The patron turned into allowed getting better damages for loss.

Consequences of misrepresentation:

Whilst the consent to a settlement is due to misrepresentation, the agreement is a settlement voidable at the option of the birthday celebration whose consent was so precipitated.

 The distinction between fraud and misrepresentation:

• underneath segment 19, defence in opposition to misrepresentation is that the agreement will now not be voidable if the birthday party whose consent changed into brought on had the way of discovering the reality with everyday diligence. This can now not be a defence in case of fraud, except for path fraud via silence.
• Fraud is intentional wrong but the identical isn't always vital in case of the misrepresentation.
• Fraud now not best renders the settlement voidable however also gives upward thrust to a motive of action in tort for damages. Primarily misrepresentation isn't always a tort however segment seventy-five of the act entitles a person rightfully rescinding an agreement to compensation for any damages which he has sustained through the non-fulfilment of the agreement.