Which of the following act will not amount to 'fraud' within the meaning of Section 17 of The Indian Contract Act?
A. The active concealment of a fact by one having knowledge or belief of the fact
B. A promise made without any intention of performing it
C. The suggestion, as a fact, of that which is true, by one who does believe it to be true
D. None above
Answer: Option C
Solution(By Examveda Team)
The correct answer is Option C: The suggestion, as a fact, of that which is true, by one who does believe it to be true.In the context of the Indian Contract Act, "fraud" is defined under Section 17. It involves making false representations or dishonest actions to deceive someone into entering a contract. However, not all actions or statements constitute fraud under this section.
Here's an explanation of the other options:
- Option A: The active concealment of a fact by one having knowledge or belief of the fact can amount to fraud if it is done with the intent to deceive.
- Option B: A promise made without any intention of performing it is a form of fraud because it involves dishonesty and a lack of intent to fulfill the promise, which can deceive the other party.
- Option D: "None above" is not the correct answer because there is an option that does not amount to fraud, which is Option C.
So, the correct answer is Option C: The suggestion, as a fact, of that which is true, by one who does believe it to be true. This option does not constitute fraud because it involves making a statement that the person genuinely believes to be true, even if it later turns out to be incorrect.
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Comments ( 1 )
Indian Contract Act:- Gods displayed in showcase of a shop with price tag is -
A. Invitation to offer
B. Counteroffer
C. Communication
D. None of these
A. Is available to Y's representatives alone
B. Is available to Z alone
C. Is available to Y's representatives & Z both
D. Is available to Y's representatives & after the death of Z, his representatives
Moses v. Macferlan (1555-1774) is a case relating to
A. Theory of unjust enrichment
B. The right of lien
C. Test of agency
D. Doctrine of frustration
A. The active concealment of a fact by one having knowledge or belief of the fact
B. A promise made without any intention of performing it
C. The suggestion, as a fact, of that which is true, by one who does believe it to be true
D. None above
Wrong answer correct is C