How would a fraud or mistake have an impact on the limitation period?
The word ‘fraud’ with reference to Section 17 of the Limitation Act is to be such fraud as is essential ingredient of the cause of action. Fraud affects limitation only where it prevented a person from knowing of his right or the title on which his claim was fraud.
What do you mean by mistake and fraud?
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; Any such act or omission as the law specially declares to be fraudulent.
How is misrepresentation different from mistakes?
In brief: Mistake vs Misrepresentation • A mistake is inadvertent and only an error on the part of the person committing it while misrepresentation is often wilful or intentional, done with the intention of gaining wrongfully.
Can misrepresentation result from an honest mistake?
Innocent Misrepresentation: A statement made by a person, believing it to be true, that actually misrepresents some material fact. An innocent misrepresentation results, in essence, in a mutual mistake of fact.
What are the consequences of misrepresentation?
If the misrepresentation is identified, the contract can be declared void and depending on the situation, the unfavourably impacted party may seek damages. In such a contract dispute, the party who made the misrepresentation becomes the defendant and the aggrieved party is the plaintiff.
What is the law on misrepresentation?
An untrue statement of fact or law made by Party A (or its agent) to Party B, which induces Party B to enter a contract with Party A thereby causing Party B loss. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages. …
What is the remedy for negligent misrepresentation?
The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages.
Why is misrepresentation bad?
A serious problem for any business to handle, fraudulent misrepresentation can do some serious damage. If the party doesn’t even believe their own truth to the point where it’s considered reckless, that’s also considered fraudulent.
Can silence be a misrepresentation?
Generally at common law, silence rarely founds a misrepresentation. There is no duty for one party to divulge information to a party with whom a contract is proposed. Information which cannot be held back is information that influences whether or not the other party will enter the contract.
Can a misrepresentation be a mistake?
Innocent Misrepresentation: A statement made by a person, believing it to be true, that actually misrepresents some material fact. An innocent misrepresentation results, in essence, in a mutual mistake of fact. Therefore, the only remedy to an injured party is generally rescission of the contract.
What is an example of misrepresentation?
In a fraudulent misrepresentation, a party makes a false claim regarding a contract or transaction but knows it isn’t true. For example, if a person is selling a car and knows there is a problem with the transmission, yet advertises it in perfect mechanical condition, they have committed fraudulent misrepresentation.
What are the effects of misrepresentation?
The effect of an actionable misrepresentation is to make the contract voidable, giving the innocent party the right to rescind the contract and/or claim damages.