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Patna High Court CWJC No.3963 of 2020 dt. 03 -09-2020

19. Ours is a case of commercial contract, which would be governed by the definition of "fraud" in the Contract Act, 1872 and consequences thereof as provided under the Act. Section 17 of the Contract Act, 1872 defines fraud as follows:

17. "Fraud" defined.--"Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:

"....Section 17 of the Contract Act defines fraud as an act committed by a party to a contract with intent to deceive another. From dictionary meaning or even otherwise fraud arises out of deliberate active role of representator about a fact which he knows to be untrue yet he succeeds in misleading the representee by making him believe it to be true. The representation to become fraudulent must be of fact with knowledge that it was false."