3. FRAUD:

3. FRAUD:
“Fraud is an intentional misrepresentation of facts with a view to induce the other to enter into a
contract”.
Essential Elements of a Fraud:
a. It must be intentional:
To do a fraud a person should willingly misrepresent a fact.
b. It must relate to a material fact:
It means that a fraud is always related to an important fact (A fact upon which a contract is made).
c. It must be given before the conclusion of the contract:

This signifies that a fraud is always done before the ending of a contract. After the end of the
contract a fraud can not be termed as a fraud even if it is a fraud. Therefore, making the person
responsible for the fraud not liable for any legal proceedings.
d. It must induce the other party:
A fraud is designed in a manner so as to compel the other party to engage in a contract.
e. It must be a statement of fact not a statement of opinion:
It means that it should base upon a concrete fact, which does not vary from person to person.
f. It must result in a loss to the aggrieved party:
It makes the point distinct that a fraud is always end in a financial loss to the victim.