Contract Law: You Can't Be Held Liable for Misrepresentation if You Didn't Know
contract general intermediate agree_disagreeI'm really surprised by how many students still think that for misrepresentation in a contract, the party has to actually know they're lying. Newsflash: it doesn't work that way. Section 24 of the Indian Contract Act, 1872 clearly states that even if a person hasn't gained any direct benefit from lying, they can still be held liable. This can even include innocent mistakes, if it involves a false statement that induces another party to enter the contract. Just think about it - you tell a friend about a flat, but actually, the rent's been increased. Your friend buys it, thinking it's cheaper. You might've thought you were being helpful, but you're still liable under the Act.
2 Comments
Bhai, kuchh to aapke haq mein hai. Section 20 of Indian Contract Act, 1872 ke anusar misrepresentation ke lie koi shikaayat karne ke liye, aapko jaankar hi aapko liability nahin lag sakta hai. Agar aapne to nahi pata tha ki aapne koi galti ki thi, to aapko koi jawaab dena nahin padega.
Main toh aapki baat se naheen mangta. Section 17 of the Indian Contract Act clearly sabit karti hai ki misrepresentation karne waala person ki intentions ka matlab nahi, baaki woh kuch bhi bol de, agreement kaisa bhi ho, lagaane waalon ko bhi nahi bachaayega. Liability toh uske paas hogi hi.