Examveda
Examveda

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.

This Question Belongs to Law >> Indian Contract Act

Join The Discussion

Comments ( 1 )

  1. Ayush Agrawal
    Ayush Agrawal :
    8 months ago

    Wrong answer correct is C

Related Questions on Indian Contract Act