Question

Which of the following acts does not fall under the categories of fraud?

• A. International false statement of facts
• B. Active concealment of facts
• C. Innocent false statement
• D. Promise made without intention to perform

Answer 1

The correct option is C Innocent false statement

As per Section 17 of the Indian Contract Act, 1872 the following acts constitute fraud:-

(1) making a false statement which a person does not himself believe to be true.

(2) The concealment or revealing of wrong statement of facts must be with the intention to deceive the person to enter into the contract.

(3) The other party must suffer a loss due to this statement.

An innocent false statement comes under the category of misrepresentation under Section 18 of the Act.