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Fraud
Fraud
Fraud
Meaning:
The term ‘fraud’ means a false representation of fact made
willfully with a view to deceive the other party. Section 17 defines
the fraud as follows:
1. The suggestion of the fact which is not true and a person making it
does not believe it to be true.
Ex:
X sells to Y locally manufactured good as imported goods
charging a higher price, it amounts to fraud.
2. Active concealment of a fact by a person having knowledge or
belief of the fact.
Ex:
X a furniture dealer, conceals the cracks in furniture sold by him
by using some packing material and polishing it in such a way that
the buyer even after reasonable examination cannot trace the
defect, it would tent amount to fraud through active concealment
3. A promise made without any intension of performing it.
4. Any such act or omission as the law specially declares to
be fraudulent.
Ex: Under Companies act and Insolvency Acts, certain
kinds of transfers have been declared to be fraudulent.
5. Any other Act fitted to deceive.
ESSENTIAL ELEMENTS
Suffered loss.